Unexpectedly Steep Drop of Building Approvals Makes Aussie Soft

The Australian dollar was vulnerable today due to unexpectedly soft macroeconomic data. The currency logged a decline, though has trimmed it against some of rivals by now.

Australian building approvals fell 8.7% in September from August after declining 1.8% in the previous reporting period. The drop was far bigger than the forecast 2.8%. Yesterday, the Aussie rallied as the Reserve Bank of Australia showed no intention to cut interest rates further, but the currency had troubles maintaining gains, losing them by the end of the trading session. Today, the Australian dollar was lower against most other peers with the exception of its US counterpart, which was even weaker.

AUD/USD was down from 0.7654 to 0.7612 intraday but rebounded to 0.7666 as of 14:49 GMT today. On the other hand, AUD/JPY traded at 79.21, below the opening level 79.65.

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