Aussie Dollar Looks Past Home Loan Data, Rebounds From Intraday Dip
THE TAKEAWAY: Home loan data short of expectation, value of loans grew > Market digesting Federal Reserve policy > AUD/USD Corrects Higher
The Australian Dollar remained relatively flat against the US Dollar after growth in Australian home loans for May fell short of Bloomberg economist expectations. The Home Loan indicator printed 1.8 percent month-over-month from a revised-up 1.2 percent in the previous month. From the same report, investment lending grew 1.5 percent while the value of home loans grew 2.3 percent.
Other data released include marginal growth in credit card spending. Credit card balances reported 49.6 billion Australian dollars while purchases totaled 22.6 billion, up from 49.4 and 21.6 billion respectively.
However, this data did not seem to affect the pair. Rather, at the time of this writing, AUD/USD looks to have corrected higher on improved risk sentiment likely tied to perceptions on Federal Reserve policy.
AUD/USD (5-Minute Chart)
Source: FXCM Marketscope
—Jimmy Yang, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.