The Australian dollar has now strengthened for four days in a row, and continues to rebound particularly 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). As recent sentiment surveys and housing data has been strong, the Australian dollar rally looks set to continue in the short term.
AUD/USD is currently trading above 0.7830. Looking at EUR/AUD, the exchange rate remains above 1.50, and is currently above 1.5090. Finally, the pound has been flat against the Aussie for the last four days, with the GBP/AUD exchange rate below 1.6990.
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). On Wednesday, consumer confidence data came in stronger than the previous figures (3.6% vs. 2.5% previously). Thursday'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.