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Australian economic data shot AUD/USD higher

On Thursday Australian dollar pushed higher against its US counterpart on the release of optimistic Buildings Approvals data from Australia. US dollar was still weak versus most major currencies.

AUD/USD reached 0.9699 during late Asian trade, highest for current session, after which consolidation followed at 0.9673-0.9677. Support was expected at todays session low, 0.9582, while resistance was to be met at 0.9777, highest of May 23rd.

According to official report, that came out earlier today, Buildings Approvals in Australia rose by 9.1% during April on a monthly basis, beating expectations for a 4.0% increase, while indicator showed a 5.5% drop during the preceding period. In annual terms, Buildings Approvals scored a significant rise by 27.3% during April, exceeding expectations for a 22.5% jump, while revised data during the previous period stated only a 4.4% rise.

Additionally, it was shown that Private Capital Expenditure indicator in Australia recorded a drop by 4.7% during Q1 2013, compared to Q4 2012, missing the projected 0.5% rise, while revised data during the previous period showed a 2.1% decrease. Data implied that resource market boom in Australia, which supported growth for the past decade, had slowed down. Companies planned to cut investment activity by 9.8% during the fiscal year, starting on July 1st, compared to the preceding one. Construction and equipment expenditures decreased by 4.7% during Q1 2013 to 38.5 billion AUD. Meanwhile, slowing economic growth and raw materials prices urged increased number of miners to reconsider their plans of expansion and reduce their labour costs, regarding current projects.

Markets await the crucial economic data from United States later today, regarding revised GDP and Initial Jobless Claims.

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