The Australian dollar gained today despite domestic macroeconomic data, which was not particularly supportive to the currency. The rally was a result of the positive market sentiment caused by news about good developments in the US-China trade relationships.
The Australian Bureau of Statistics reported that the House Price Index fell 1.5% in the September quarter from the previous three months, matching the analysts’ general consensus, after falling 0.7% in the previous quarter. National Australia Bank reported that both the business conditions and confidence indexes declined 2 points to 11 and 3 respectively in November. The report commented on the result:
The decline in the month was driven by falling profitability and lower turnover. On the positive side, employment rebounded a little and continues to suggest relatively robust growth in the workforce.
Released yesterday, the number of home loans rose by 2.2% in October from September instead of falling by 0.5% as analysts had predicted.
The big news of Tuesday was that China is considering a cut of tariffs on US automobiles from 40% to 15%. It reduced concerns that the arrest of the chief financial officer of Chinese tech giant Huawei will derail trade negotiations between the United States and China.
AUD/USD gained from 0.7190 to 0.7206 as of 20:25 GMT today, touching the high of 0.7225 during the trading session. EUR/AUD dropped from 1.5791 to 1.5714. AUD/JPY advanced from 81.48 to 81.73, rebounding from the daily low of 81.23.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
