The Australian dollar fell yesterday and remained soft today, even though the Aussie trimmed its losses against some currencies. The good manufacturing report from China was not able to help the Australian currency as domestic data was not particularly supportive.
The government report showed that the number of building permits fell 5.6 percent in April from March in Australia instead of rising 2.1 percent as was predicted by analysts. Other data from Australia was relatively good, and the report from China demonstrated accelerating growth of the manufacturing sector. Yet all the good news was not able to outweigh the bad data.
The Reserve Bank of Australia will make an announcement about its monetary policy decision later today. While no changes to the policy are expected, the wording of accompanying statement may have a big impact on the Aussie.
AUD/USD traded at about 0.9242 as of 00:48 GMT today after falling from 0.9308 to 0.8243 yesterday. EUR/AUD was at 1.4714 following yesterday’s advance from 1.4645 to 1.4704. AUD/JPY traded near 94.64, while yesterday the currency pair slid from 94.80 to 94.64, reaching the low of 94.27 intraday.
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