The AUD pushed higher in the last trading session of 2011, boosted by improving data on U.S. housing and employment.
Further helping the local currency, and sentiment about the Australian economy, Australian house prices saw the first monthly rise in a year in November, buoyed in part by the first cut in interest rates from the Reserve Bank of Australia since early 2009. For November, the RP Data-Rismark capital city home value index rose 0.1% from October, the first increase since 2010.
A decline in property prices across Australia in 2011 has been one of the largest concerns among foreign holders of Australian assets, including the local currency. More broadly, however, it was U.S. initial jobless claims registering the fourth week in a row below 400,000, and data showing the number of Americans signing contracts to buy existing homes increasing to its highest level in 19 months, that have the biggest push to risk-sensitive assets such as the Australian currency.
At 0315 GMT, the Australian dollar was trading at US$1.0143, up from US$1.0085 late Thursday. Against the Japanese yen, the Australian currency changed hands at Y78.715, up from Y78.454.
In the most anticipated report of the day, the Australian dollar was little changed by the final HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, which rose to 48.7 in December, compared with 47.7 in November. Despite the slight rise in the PMI, it remains in contraction territory.
Also of note for the local currency and fixed income markets, data from the RBA showed credit to the Australian private sector rose a seasonally adjusted 0.3% in November from October.
EasyForexNews Research Team