News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • US Dollar catches bid to turn positive on the day with the help of overall solid economic data. Get your market update. Get your market update from @RichDvorakFX here: https://t.co/sXNRSdjuuM https://t.co/wp8C8QGsPG
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 3.31% Gold: 1.21% Oil - US Crude: -4.96% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/djmgUXXGEl
  • Pelosi and Mnuchin plan to speak by phone this afternoon according to person familiar - -BBG
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇦🇺AUD: 0.30% 🇨🇭CHF: 0.24% 🇪🇺EUR: 0.18% 🇯🇵JPY: -0.07% 🇬🇧GBP: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jy4WNvg5OL
  • Commodities Update: NYM WTI Crude 37.89 (-5.79%), ICE Brent Crude 40.13 (-5.13%), NYM NYH Gasoline 113.16 (-4.24%). [delayed]
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.70% Wall Street: 0.48% France 40: 0.16% Germany 30: 0.15% FTSE 100: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/XZ3SPnM3C6
  • White House reportedly raises latest coronavirus aid proposal amount to $1.6 trillion from prior $1.5 trillion floor, according to spokesperson - BBG
  • Hey traders! Get your Thursday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/Q7PEyWzd8y
  • US Dollar catches bid to turn positive on the day with the help of overall solid economic data. Get your market update. Get your market update from @RichDvorakFX here: https://t.co/sXNRSdjuuM https://t.co/MSAUhvdaP7
  • Pelosi says talks with Mnuchin were constructive - BBG
Australian Dollar Takes a Knock From Home-Loan Weakness

Australian Dollar Takes a Knock From Home-Loan Weakness

2017-04-10 02:40:00
David Cottle, Analyst
Share:

Talking Points:

  • Australian home loans wilted in February
  • Their 0.5% fall wiped out January’s rise in its entirety
  • Still, the local central bank might not be wholly displeased

Would you like to know more about trading the financial markets? DailyFX’s trading guide should be your first stop.

The Australian Dollar slipped a little against its US cousin Monday on news that home loans had shrunk more than expected in the domestic market.

Loans for dwellings fell 0.5% on the month in February, according to official figures. That exactly retraced January’s gain and came in much weaker than the flat outcome which markets were expecting. Investment lending fell even more, dropping by 5.9% on the month for the biggest decline since September 2015.

The Australian Dollar didn’t care for these weaker figures, although it’s unclear what effect if any they will have on monetary policy thinking at the Reserve Bank of Australia. Its officials have often said that high levels of personal debt are one reason they don’t want to cut interest rates any further, for fear of recharging the borrowing binge. However, the RBA also doesn’t want to crump consumer spending at this point, and higher rates will mean higher loan-repayments.

The RBA would probably also quite like to see some of the froth come off Australia’s housing markets, where pockets of regional vigor have some investors worried about a bubble. So, a fall in home lending may not be entirely unwelcome.

Still, AUD/USD took the news poorly, falling to 0.74900 from 0.75040 just before the data.

Modest Knock: AUD/USD

Australian Dollar Takes a Knock From Home-Loan Weakness

The Aussie was already under some pressure as US Dollar bulls took solace from recent Federal Reserve commentary to the effect that rates may continue to rise even if the US central bank also tightens policy via cutting its vast balance sheets. Worries that one might come without the other had seen the greenback slide at certain points last week.

The US currency has also gained against may peers, catching a modest haven bid after last Friday’s US missile strikes against Syria.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES