AUD/USD: Australia’s home loan approvals advanced above expectations in July


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.5% against the USD and closed at 0.8047.

LME Copper prices declined 0.3% or $21.5/MT to $6842.5/MT. Aluminium prices rose 0.3% or $5.5/MT to $2075.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.8095, with the AUD trading 0.6% higher against the USD from yesterday’s close.

Early morning data showed that Australia’s seasonally adjusted home loan approvals climbed 2.9% on a monthly basis in July, more than market expectations for a rise of 1.0%. In the previous month, home loan approvals had recorded a revised gain of 1.2%.

Elsewhere in China, Australia’s largest trading partner, trade balance surprisingly narrowed to CNY286.5 billion in August, compared to market consensus for the nation’s trade surplus to widen to CNY335.7 billion. In the previous month, the nation had recorded a trade surplus of CNY321.2 billion. Meanwhile, the nation’s exports rose less-than-expected by 6.9% YoY in August, after recording a rise of 11.2% in the prior month. Meanwhile, the nation’s imports grew more-than-anticipated by 14.4% in August, compared to an advance of 14.7% in the preceding month.

The pair is expected to find support at 0.8014, and a fall through could take it to the next support level of 0.7932. The pair is expected to find its first resistance at 0.8138, and a rise through could take it to the next resistance level of 0.8180.

Going forward, all eyes will be on a speech by the Reserve Bank of Australia’s (RBA) Governor, Philip Lowe, scheduled in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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