The Australian dollar rose against other most-traded currencies today. There was no apparent reason for the rally as domestic macroeconomic data released over Friday’s trading session was not impressive and there was no news about the US-China trade negotiations.
The Reserve Bank of Australia reported that private sector credit rose 0.1% in October, demonstrating slower growth compared with September when the indicator rose by 0.2%. Furthermore, the actual figure missed the consensus forecast of a 0.3% increase.
The Housing Industry Association reported that new home sales fell by 0.5% during the three months to October after climbing 5.7% in the preceding month. Prices were down 3.1% compared with the same period of the previous year. Nevertheless, the report considered the result to be positive, explaining:
The biggest difference between the latest three months and last year is that the market is no longer experiencing material declines and is starting to gain some momentum.
Trading is expected to be light today due to the Thanksgiving holiday in the United States and Canada. Going forward, the main focus of markets will be increasing tensions between the USA and China over Hong Kong protests and the question of how that affects the trade talks. Analysts speculated that the signing by US President Donald Trump of the legislature that formally supports Hong Kong protesters means that the President thought that there is no reason to wait as the phase-one deal is not that close.
AUD/USD gained from 0.6768 to 0.6776 as of 10:38 GMT today. EUR/AUD went down from the open of 1.6255 to 1.6237, retreating from the daily high of 1.6279. AUD/JPY inched up from 74.12 to 74.23.
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