Australian Dollar Faces Pressure Despite Positive Construction Data
By Anatol Thomas
The construction data of Australia was released earlier in the day.
Despite the positive data, the Australian dollar faced pressure in the market during the Asia/ Pacific session. The domestic housing market health also improved in the recent months.
The Australian construction index for April was reported as 51.9. This index is similar to the Purchasing Managers index. Any value greater than 50 indicates an expansion in the field. The April report showed gains from 51.2 in March. The AIG index is supported by the increase in the construction of apartments. There is also a considerable increase in the construction of houses. However, the commercial building construction is still lagging behind expectations. The business conditions, on the whole, ended up with a positive assessment in April.
On Thursday, the Housing Industry of Australia reported a decline of 1.1% in home sales in March. Record peaks were experienced in 2016, but the home sales index has been declining. Recent AIG survey indicated a hope for pickup.
The overall business economics data showed a gradual growth, but it didn’t support the Australian dollar in the market. The US dollar’s dominance in the market has further led to the decline of the Australian dollar. This market condition is problematic for bulls. The commodity prices continue to decline and the world economy is itself under pressure due to the protectionist policies of the White House. The AUD/USD pair was trading at 0.7400, down from 0.74155.
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