Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Forex - Aussie edges down after housing data, kiwi retraces gains

Published 11/29/2016, 08:35 PM
Updated 11/29/2016, 08:36 PM
Aussie weaker after housing

Investing.com - The Aussie fell on Wednesday in Asia after mixed housing related data and the yen gain slightly, while the kiwi retraced gains after the central bank highlighted housing market risks in its latest financial stability report.

USD/JPY changed hands at 112.33, down 0.04%, while AUD/USD traded at 0.7478, down 0.07%. NZD/USD traded at 0.7140, up 0.17%.

In Japan, industrial production rosee 0.1%, beating a 0.1% fall seen month-on-month in October.

Australia reported building approvals plunged 12.6%, compared to an expected gain of 1.5% month-on-month in October and private sector credit fell 3.4%, compared to a 0.4% gain seen in October month-on-month. However, housing credit rose 0.6% in October, from a 0.5% increase the previous month.

A renewed pickup in investor mortgages is likely to make the Reserve Bank of Australia more watchful of the developments in the housing market. On the other hand the continuation of a subdued pace of personal-credit growth remains a concern for the economy's growth outlook because the RBA is relying on household consumption to help growth.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, wrose 0.04% to 101.02.

Overnight, the dollar trimmed gains but remained broadly supported against the other majors currencies on Tuesday, as the release of strong U.S. data added to optimism over the strength of the economy.

Official data showed that the second estimate of third quarter U.S. gross domestic product rose 3.2%, up from the initial reading of a 2.9% expansion.

Analysts were looking for a smaller upward revision to just 3.0%. In addition, the Conference Board said its consumer confidence index rose to 107.1 this month from a reading of 100.8 in October, whose figure was revised from a previously reported 98.6.

Analysts had expected the index to increase to 101.2 in November. The upbeat data added to optimism over the outlook for the U.S. economy amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.

The strong report also added to expectations that the Federal Reserve will decide to raise interest rates at its December policy meeting.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.