THE TAKEAWAY: Australia’s HIA new home sales increased by 4.2% in January > Growth indicative of healthy economy, but RBA comments overshadow economic data > Aussie Outlook Bullish
Australian new home sales grew by 4.2% in January according Australia’s Housing Industry Association (HIA), signaling a continual strength in Australia’s new homes market, with sales growing by over 6% in February. The Aussie remained relatively unchanged following the HIA data release, with the AUD/USD at 1.02347 as of this report.
Although growing new home sales may be indicative a healthy Australian economy, forex traders may be more concerned with today’s release of comments by the Reserve Bank of Australia (RBA). In an August 17, 2012 briefing note, the RBA commented on the Aussie’s value, claiming that it was significantly overvalued according to the bank’s preferred models. While the RBA did not address taking any actions in order to depress the inflationary of the currency, investors should make sure to pay attention to future RBA commentary and Australian economic data.
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AUD/USD (3 Year Chart)
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