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Forex - AUD/USD rises despite downbeat Australian housing data

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Investing.com -

Investing.com - The Australian dollar was higher against its U.S. counterpart on Wednesday, despite the release of downbeat Australian building approvals data as sentiment on the greenback weakened ahead of a speech by Federal Reserve Chair Janet Yellen later in the day.

AUD/USD hit 0.7021 during late Asian trade, the session high; the pair subsequently consolidated at 0.7008, rising 0.32%.

The pair was likely to find support at 0.6934, Tuesday's low and resistance at 0.7095, the high of September 23.

The Australian Bureau of Statistics reported on Wednesday that building approvals declined by 6.9% last month, compared to expectations for a 2.0% drop. Housing approvals increased by 7.9% in July, whose figure was revised from a previously estimated 4.2% gain.

Meanwhile, investors awaited comments by Fed Chair Janet Yellen due later in the day after mixed messages from several U.S. central bank policymakers last week led to uncertainty over whether the Fed will raise short term interest rates this year.

New York Fed President William Dudley and San Francisco Fed head John Williams indicated support for a rate hike in 2015 in separate speeches on Monday, but Chicago Fed President Charles Evans said rates should remain on hold until mid-2016.

Last week, Ms. Yellen said that the bank was still on track for a rate hike before the years end.

The U.S. dollar still remained supported however after the Conference Board reported on Tuesday that its index of consumer confidence rose to an eight-year high of 103.0 this month from a reading of 101.3 in August.

The Aussie was also higher against the euro, with EUR/AUD retreating 0.48% to 1.6024.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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