Aussie dips on weak housing data

 

Building permits decline

The number of building permits issued in Australia fell for the third consecutive month in December, testimony to the weak outlook for the domestic housing market. Permits declined 8.4% m/m following a 9.8% contraction in November, with economists’ estimates predicting a 1.8% increase, according to the latest survey.

AUD/USD was already feeling a bit of pressure from Friday’s stellar US nonfarm payroll report which gave the US dollar a boost, at least in the short term. The additional pressure took AUD/USD down to a five-day low of 0.7229 with the 200-day moving average at 0.7298 proving to be a tough obstacle for the FX pair to overcome, at least for now.

 

AUD/USD Daily Chart

Source: OANDA fxTrade

 

Pound capped by election rumours

The pound traded lower in very thin, lackluster trading during the Asian session. There was speculation in the UK weekend newspapers suggesting advisers to PM May were considering holding elections on June 6 under a plan where Brexit was delayed past the current March 29 deadline. The Prime Minister’s Office has subsequently denied the report. GBP/USD traded as low as 1.3069 before stabilizing at 1.3078.

 

Slow start to the week on the data front

There’s not much to excite on the data calendar today, with UK January PMI data for the construction sector and Euro-zone’s investor confidence index for February the events on the European slate. The US sees factory orders for November, which are seen rising 0.2% m/m after October’s 2.1% contraction.

 

The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

 

Happy Lunar New Year from Singapore.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.
Andrew Robinson

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