Aussie Slips In Wake Of Soft Building Approvals Data

01:17, 31st July 2014

(RTTNews) - The Australian dollar weakened against the other major currencies in the Asian session on Thursday after data showed that building approvals in Australia fell unexpectedly in June.

Data from the Australian Bureau of Statistics showed that the total number of building approvals issued in Australia tumbled 5.0 percent in June, belying expectations for a flat reading.

Meanwhile, the Reserve Bank of Australia showed that private sector credit in Australia was up a better than expected 0.7 percent on month in June - beating forecasts for 0.4 percent.

The Australian dollar, which weakened against the dollar following the release of strong U.S. GDP data in early New York session yesterday,has stabilized thereafter. The pair experienced some volatility amid the release of the FOMC statement and moved broadly sideways in a range. With the release of the building approval data, the pair has moved below a near term support around 0.93194.

Against the U.S. and Canadian dollars, the aussie slipped to 0.9306 and 1.0150 from early highs of 0.9331 and 1.0175, respectively. If the aussie continues slide, it may find support around 0.92 against the greenback and 1.00 against the loonie.

The Australian dollar fell to a 1-week low of 1.0964 against the NZ dollar, from an early high of 1.0991. If the aussie extends its downtrend, it is likely to find support around the 1.08 area.

Data from the the Reserve Bank of New Zealand showed that New Zealand's money supply increased at a faster pace in June. M3 money supply, the broadest measure of money supply, rose 5.4 percent year-on-year to NZ$272.5 billion in June. This follows a 5.2 percent rise in May.

Against the euro, the aussie slipped to a 9-day low of 1.4393 from an early high of 1.4346. The aussie may test support near the 1.44 zone.

Looking ahead, Japan housing starts and construction orders for June are due to be released in the Asian session.

In the European session, German unemployment rate for July and retail sales for June and Eurozone CPI for July and unemployment rate for June are due to be released.

In the New York session, the Canada GDP for May, U.S. weekly jobless claims for the week ended July 26 and Chicago PMI for July are due to be released.