Australian dollar lost ground against its major peers on Wednesday ahead of the unemployment report, scheduled for release tomorrow, while the US dollar remained under pressure amid continuing uncertainty over the future of Federal Reserves Quantitative Easing.
AUD/USD hit a session low at 0.8929 at 7:48 GMT, after which the pair consolidated at 0.8943. Support was expected at August 6th low, 0.8907, while resistance was to be encountered at July 31st high, 0.9072.
Earlier today it was reported that the number of home loans in Australia rose by 2.7% to 51 001 in June, which exceeded preliminary estimates of a 2.0% rise, following the 1.7% advance during May, a revision down from 1.8% rise previously. On the other hand, investment lending dropped by 0.5% to 8.329 billion AUD in June on a monthly basis, after the 1.1% increase during the preceding month, which was a revision down from 1.5% previously.
“The general outlook for the Australian economy, despite what’s going on in the housing market right now, seems to be one of concern, particularly heading into tomorrow’s employment report,” said Jim Vrondas, the Sydney-based chief currency and payment strategist at OzForex Pty, cited by Bloomberg. “Given that the Aussie failed to sustain any move above 90 U.S. cents after the RBA, it’s only natural that we see markets start to sell off again.”
Australian unemployment rate probably increased to 5.8% during July, from 5.7% in the preceding month, according to the median estimate of economists, Surveyed by Bloomberg. Such level, if confirmed, would be the highest point since August 2009.
Meanwhile, the greenback was under pressure, as recent economic data from the United States fueled the uncertainty over the future of Federal Reserve’s monthly asset purchases.
Elsewhere, the Aussie was trading lower against the kiwi dollar, as AUD/NZD pair erased 0.38% to 1.1335 at 8:17 GMT. Australian dollar was losing ground against the euro as well, with EUR/AUD cross added 0.25% to 1.4850 at 8:19 GMT.
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