Australian Dollar Bounces Resisting Pressure from Fundamentals

The Australian dollar bounced today after initial drop even though not all economic reports from Australia were helpful for the currency. The bounce does not look impressive, though, compared to the recent streak of losses.
The Westpac-Melbourne Institute Consumer Sentiment Index fell 5.7 percent in December. The report said:

This is a very disturbing result. The Index is now at its lowest level since August 2011.

As a piece of good news, home loans increased 0.3 percent in October from the previous month, beating analysts’ estimates.
AUD/USD rallied from 0.8290 to 0.8331 as of 13:46 GMT today after falling to 0.8264 intraday. EUR/AUD dropped from 1.4916 to 1.4872.

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