13 Jan 2014
AUD/USD driven by disappointing US data
FXstreet.com (London) - AUD/USD added to gains in the overnight session. The pair largely ignored Australian housing data and instead continued on the momentum of Friday’s weak US non-farm payroll numbers.
Falling in line with market expectations, November home loans gained 1.1 percent, leaving home loans up 15.3 percent on the year, with the housing sector as a whole extremely bullish on the Reserve Bank of Australia’s loose monetary policy.
Non-farm payrolls driving AUD/USD bullishness
With little to surprise the markets within Australian data, the pair was instead driven by momentum from Friday’s miss in US non-farm payroll data expectations, where just 74k jobs were added in December, after November’s upwardly revised 241k print.
Stevens could play down AUD levels
Currently trading at USD0.9036, up 0.5 percent on the session, the pair is now above the level of 12 December when RBA governor Glenn Stevens talked the AUD down, saying that “85 U.S. cents would be closer to the mark than 95 cents.” With Stevens showing in the past that he is prepared to talk down AUD strength whenever it threatens deflationary pressure, the current >USD0.9000 levels should be watched for a similar move.
Falling in line with market expectations, November home loans gained 1.1 percent, leaving home loans up 15.3 percent on the year, with the housing sector as a whole extremely bullish on the Reserve Bank of Australia’s loose monetary policy.
Non-farm payrolls driving AUD/USD bullishness
With little to surprise the markets within Australian data, the pair was instead driven by momentum from Friday’s miss in US non-farm payroll data expectations, where just 74k jobs were added in December, after November’s upwardly revised 241k print.
Stevens could play down AUD levels
Currently trading at USD0.9036, up 0.5 percent on the session, the pair is now above the level of 12 December when RBA governor Glenn Stevens talked the AUD down, saying that “85 U.S. cents would be closer to the mark than 95 cents.” With Stevens showing in the past that he is prepared to talk down AUD strength whenever it threatens deflationary pressure, the current >USD0.9000 levels should be watched for a similar move.