The Australian dollar rebound continues, and the currency has been strengthening against most major currencies including the US dollar, the pound and the euro. 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). The Aussie was looking oversold in the short-term, thus this week's rebound is not particularly surprising.
AUD/USD is currently trading above 0.7820. Looking at EUR/AUD, the exchange rate remains above 1.50, and is currently above 1.5160. Finally, the pound is down sharply against the Aussie this morning, with the GBP/AUD exchange rate below 1.6930.
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). Yesterday, consumer confidence data came in stronger than the previous figures (3.6% vs. 2.5% previously). Today's home loan growth (1% vs 0.5% expected) and lending for housing data (4.3% vs. -3.9% prior) were both very good. 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.