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Forex - Aussie falls further as HIA home sales show sharp drop

Published 03/30/2016, 09:07 PM
Updated 03/30/2016, 09:08 PM
© Reuters.  Aussie falls further
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Investing.com - The Aussie fell further in Asia on Thursday with home sales figures disappointing sentiment even as private sector credit showed solid gains.

AUD/USD traded at 0.7650, down 0.27%, while USD/JPY changed hands at 112.61, up 0.16%.

In Australia, HIA new home sales for February fell 5.3% with the previous month up 3.1% month-on-month.

As well private sector credit came in at a gain of 0.6%, beating the expected to show a 0.5% gain month-on-month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.08% to 94.87.

Overnight, the dollar fell to five-month lows against the other major currencies on Wednesday, even after data showed that U.S. non-farm private employment rose more-than-expected this month, as comments by Federal Reserve Chair Janet Yellen continued to weigh. Payroll processing firm ADP said non-farm private employment rose by 200,000 last month, surpassing expectations for an increase of 194,000.

The economy created 205,000 jobs in February, whose figure was downwardly revised from a previously reported increase of 214,000.

In a speech at the Economic Club of New York late Tuesday, Yellen said global risks to the U.S. economy, including low oil prices and uncertainty over China justified taking a cautious approach to tightening monetary policy.

The comments contrasted with recent remarks by some Fed officials who indicated that the bank could act as soon as next month to raise interest rates.

Earlier Wednesday, data showed that Japan’s factory output posted the largest drop in February since a massive earthquake and tsunami in 2011 hit the supply chain, adding to fears that the economy is at risk of falling into a recession.

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