Australian dollar remained steady against its US counterpart on trading Thursday, with market participants expecting the series of crucial economic indicators from the United States, while the US dollar was still supported, following the positive signal, submitted by the housing sector in the country.
AUD/USD slipped to a session low at 0.9127 at 0:50 GMT, after which the pair consolidated at 0.9150, still down by 0.16% for the day. Support was likely to be found at July 15th low, 0.9036, while resistance was to be encountered at July 24th high, 0.9318.
US dollar expanded sharply against its major peers on Wednesday after the Commerce Department of the United States said that new home sales climbed to a five-year high in June, up by 8.3% to a seasonally adjusted annual number of 497 000 units, considerably above preliminary estimates of 484 000 units, as in May home sales were revised down to 459 000 from 476 000 previously. This data gave strength to expectations that the Federal Reserve Bank will begin scaling back its asset purchases by the end of this year.
Meanwhile, the Aussie slid to 4.5-year lows against the New Zealand dollar, after Reserve Bank of New Zealand Governor Graeme Wheeler said that a removal of monetary stimulus may be needed in the future, following a policy review today. Additionally, bets were taken that an increase in borrowing costs may be on its way as soon as January 2014. AUD/NZD pair collapsed by 1.08%, trading at 1.1429 at 8:02 GMT.
The kiwi dollar has added 0.7% through the course of this year, according to Bloomberg Correlation-Weighted Indexes, while the Australian dollar has erased 9%, the worst performing currency after the Japanese yen among the 10 developed-nation currencies.
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