Investing.com - The Aussie held early gains in Asia on Thursday despite an unexpected plunge in building approvals in November of last year with the trade gap a bit narrower than expected.
AUD/USD rose 0.09% to 0.7080, while USD/JPY changed hands at 118.65, up 0.12%.
In Australia, building approvals for November month-on-month plunged 12.7%, well below the 3.0% fall expected. Private house approvals fell 0.5% in November.
As well, exports rose 1% and imports fell 1% for an overall trade balance deficit of A$2.91 billion, a tad narrower than the A$3.1 billion seen.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.03% to 99.30.
Overnight, the dollar held steady against the other major currencies on Wednesday, after the release of mixed U.S. economic reports as concerns over global geopolitical tensions continued to weigh on demand for riskier assets.
The minutes from the Federal Open Market Committee's (FOMC) December meeting, released on Wednesday, showed that all of its voting members were in agreement that labor market and inflation conditions at the time were appropriate to raise short-term interest rates modestly by 25 basis points. Last month in a historic decision, the FOMC abandoned a seven-year zero interest rate policy by approving its first rate hike in nearly a decade. Previously, the FOMC's benchmark Federal Funds Rate, remained at a zero bound range between zero and 0.25% for every meeting dating back to December, 2008. Furthermore, the members agreed that all subsequent rate hikes would be gradual and would remain low in the long-run future for some time.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to a 20-month low of 55.3 last month from 55.9 in November, missing forecasts for a reading of 56.0.
In addition, the U.S. Census Bureau said factory orders decreased by 0.2% in November, matching forecasts. The data came after payroll processing firm ADP reported that non-farm private employment rose by 257,000 last month, easily surpassing expectations for an increase of 192,000.
A separate report showed that the U.S. trade deficit narrowed to $42.37 billion in November from a revised deficit of $44.58 billion in October. Analysts had expected the U.S. trade deficit to narrow to $44.0 billion in November.
Meanwhile, investors remained cautious after North Korea confirmed on Wednesday that it had conducted a nuclear test and said that it won't give up nuclear capability unless U.S. abandons its hostile foreign policy towards the country. Markets were also jittery amid growing tensions between Iran and Saudi Arabia, following the execution of a prominent Saudi Shia cleric.