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.
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