The AUD rebounded in Asian trading Tuesday, helped by improving trade data from China and strong building approvals in Australia. After falling against most major crosses on Monday, the AUD pushed back above US$1.0300 for the first time since last Thursday late in the local trading session. Coinciding with the gain, Australian government bonds fell on both ends of the curve.
Helping the local currency was a bigger-than-expected Chinese trade surplus, which rose to US$16.5 billion in December compared with the US$7.8 billion expected by analysts.
Further aiding the currency’s gain, approvals for Australian housing construction surged in November, providing one of the first signs that a rate cut from the country’s central bank late last year could help a depressed housing market. For November, the total number of Australian houses and apartments approved for construction rose a seasonally adjusted 8.4% from October. Economists had expected on average that total residential building approvals rose 6.5% from the month before.
At 0500 GMT, the AUD was trading at US$1.0303, up from US$1.0172 late Monday. Against the JPY, the AUD changed hands at Y79.156, up from Y78.26.
EasyForexNews Research Team