Australian dollar traded at lower levels against the US peer on Thursday, following the release of weaker than expected data from Australia, regarding building approvals.
AUD/USD pair reached a session high at 0.9133 in the later phase of Asian trade, after which consolidation followed at 0.9111. Support was expected at July 3rd low and almost three-year low, 0.9038, while resistance was likely to be met at July 2nd high, 0.9250.
Earlier today it was reported that Building Approvals in Australia dropped deeper in May, neutralizing a part of the stable growth rate in April. In May on a monthly basis building approvals decreased by 1.1%, mismatching forecasts of a 1.0% drop, while revised data in April stated a 9.5% increase. In annual terms, this indicator dropped by 3.2% in May, as in April it jumped by 28.8%. Results did not speak of positive prospects, regarding investment expenditures in the countrys construction sector.
Meanwhile, investors’ attention was on Friday’s non-farm payrolls report from the United States, because it could provide clues on whether a reduction of scale of stimulus by the Federal Reserve was at hand. On Wednesday payroll processor ADP reported that US private sector added 188 000 more jobs in June. Experts had projected an increase to 160 000 job positions, while in May economy added 134 000 jobs. Additionally, the number of people, who filed for unemployment assistance decreased in the week, ended on 28.06.2013, by 5 000 to 343 000.
On Thursday US markets will remain closed for the Independence day holiday, thus, light-volume trade is expected.
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