Australian dollar registered a sharp drop against its US counterpart to 1.5 year low on Wednesday after the release of economic data from Australia.
AUD/USD reached 0.9527 during Asian session, lowest since October 5th 2011, after which consolidation followed at 0.9556. Support was meant to be received at October 5th 2011 low, 0.9488, while resistance was expected at 0.9696, highest from Tuesday.
Earlier today it was reported that Housing Industry Association (HIA) New Home Sales in Australia increased by a slower rate, 3.9% during April annually, compared to the rate registered during the preceding period, 4.2%.
Additionally, Construction Work Done indicator dipped by 2.0% during Q1 this year, compared to Q4 2012, opposing the projections for a 1.0% rise and the recorded 0.1% increase during the previous period.
MI (Melbourne Institute) Leading Index, which is used as a base for predictions of Australias economic growth in short-term and medium-term, recorded a 0.2% rise during March on a monthly basis, while the previous period change showed a 0.6% increase.
Meanwhile, US dollar was supported after Tuesdays strong data, which showed improvement in US Consumer Confidence, that rose to the highest level since February 2008.
Another report stated that US home price index also increased during March, beating expectations and previous period data.
These two indicators additionally bolstered expectations for a scale back in FEDs asset purchases later this year.