Yesterday was a good day for the Australian dollar, and the currency was particularly strong against the US dollar. Earlier, we wrote that AUD was due for a rebound, given recent strength in the Chinese yuan and the broader economy (China is Australia's largest trading partner). Looking at the yuan, the People's Bank of China continues to support the yuan by selling dollars and this should keep the Australian dollar on a strengthening path in the short term.
AUD/USD is currently trading above 0.7780. Looking at EUR/AUD, the exchange rate remains above 1.50, and is currently above 1.5180. Finally, the pound is down slightly against the Aussie this morning, with the GBP/AUD exchange rate below 1.6960.
This week’s economic data releases include surveys and housing debt-related announcements. Tuesday's business confidence survey results (7), were higher than the previous count (5). Business conditions (14) remained flat relative to the last release (14). Today, consumer confidence data came in stronger than the previous figures (3.6% vs. 2.5% previously). Finally on Thursday, we’ll see home loan growth, investment lending for housing and consumer inflation expectations. Given the ongoing housing boom in Australia, investors watch data relating to housing fairly closely. Last week's weak retail sales data disappointed the markets, causing AUD to sell off sharply.