Australian Dollar Continues to Rally, Ignoring Negative Domestic Data

The Australian dollar continued to rally today even though domestic macroeconomic data was rather detrimental to the currency. It looks like the trading environment continues to favor risky growth-related currencies.
Australian home loans dropped 6.1 percent in May on a seasonally adjusted basis — almost two times the median analysts’ estimate. It was the biggest drop since December 2009. Still, the currency extended yesterday’s rally, most likely continuing to profit from the optimistic traders’ mood.
AUD/USD rallied from 0.7445 to 0.7469 as of 9:47 GMT today, touching the daily high of 0.7495. AUD/JPY leaped 1.1 percent from 90.33 to 91.33.

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