The Australian dollar dropped today, pulled down by building approvals data that was much worse than has been expected. The currency also weakened as the market environment was not favorable to risky currencies after yesterday’s news from the United States.
The seasonally adjusted number of total dwellings approved fell 5.0 percent in June after rising 10.3 percent in the previous month. The actual drop was five times bigger than the predicted 1.0 percent. Yesterday’s data from the United States boosted the US dollar, putting other currencies under pressure, especially riskier ones like the Aussie.
AUD/USD dropped from 0.9319 to 0.9293, and AUD/JPY declined from 95.91 to 95.58 as of 10:57 GMT today.
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