The Australian dollar is rising this morning despite disappointing business confidence and house price index numbers. Business conditions came in at 12 (vs. 21 prior) while confidence fell to 6 (vs. 8 prior). Quarter-over-quarter house prices fell by 0.2% (vs. 0.5% expected). While the currency initially fell following the economic data releases, the Aussie has since strengthened. The Australian dollar is gaining against all major peers including the US dollar, the euro and the British pound. Despite today's strength, our short-term and medium-term trending indicators continue to suggest a bearish trend.
AUD/USD is currently up and trading just above 0.7540. Looking at EUR/AUD, the pair is down and currently just above 1.560. The GBP/AUD exchange rate is down and currently above 1.7680.
This is a pretty light week for economic data and events relating to the Australian dollar. Business conditions came in at 12 (vs. 21 prior) while confidence fell to 6 (vs. 8 prior). Quarter-over-quarter house prices fell by 0.2% (vs. 0.5% expected). Tomorrow, we’ll see Westpac consumer confidence as well as speeches by RBA Governor Philip Lowe. On Thursday we’ll see changes in employment as well as the unemployment rate. Last week, GDP growth missed expectations on consumer weakness.