The Australian dollar attempted to rally today, defying adverse fundamentals, but the rally has been limited so far. In fact, the currency retreated to the opening level against its US peer, though managed to keep gains versus the Japanese yen.
Australian building approvals sank as much as 8.2 percent in June from May, about 10 times the analysts’ expectations. The poor data added to the downside pressure on the Aussie caused by yesterday’s policy announcement from the US Federal Reserve. Yet the Australian currency demonstrated surprising resilience, holding ground against other major rivals (and even rising against some of them).
AUD/USD traded close to its opening level of 0.7294 as of 9:49 GMT today after rising to 0.7322 earlier. AUD/JPY gained from 90.38 to 90.57, and its daily high of 90.88 was highest in almost a week.
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