Forex: AUD/USD at 3-year low

on Jul 3, 2013
Listen Wednesday July 3rd:_ The AUD/USD started today’s Asian session at 0.9137 and descended to a three-year low at 0.9052 ahead of the European opening. The pair is down 0.85 percent on the day so far.

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The Australian dollar slumped following statements by the Reserve Bank of Australia governor Glenn Stevens. He said that the RBA’s governing board deliberated for “a very long time” before deciding to leave the cash rate unchanged and that the Australian economy would probably get a lower dollar “if it needed it”.

The AiG Performance of Services Index for June came out at 00.30 BST, logging 41.5 points, up from April’s 40.6 but still well on the wrong side of 50, the reading which divides expansion from contraction.
Australian new home sales data was reported at 02:00 BST, with a rise for a third straight month to a seasonally adjusted 1.6 percent in May m/m, the highest level in 18 months. April was a 3.9 percent rise.

HIA chief economist Harley Dale observed: “A range of housing indicators, including new home sales, suggest Australia experienced modest growth in new residential construction in 2012/13, with some momentum in activity set to carry into the fresh financial year. The key is whether a new home building recovery can be sustained, and at a growth rate sufficient to meaningfully assist the Australian economy with its rebalancing acts.”

Later in the Asian session, Australian retails sales for May were reported as a 0.1 percent rise, below the expected 0.3 percent increase, but a recovery from April’s 0.1 percent fall.
Also during Asian trading, Australia’s trade balance for May came out at a surplus of AU$670 million, well up from April’s AU$171 million and confounding forecasts for a deficit of A$53 million.


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