AUD/USD maintained gains after Australian private sector credit data

Australian dollar continued trading higher against its US counterpart on Friday, following the release of positive data, regarding private sector financing in Australia.

AUD/USD hit a session high at 0.8957 at 7:02 GMT, after which consolidation followed at 0.8940, up by 0.10% for the day. Support for the pair was likely to be received at August 5th low, 0.8848, while resistance was to be encountered at August 26th high, 0.9070.

Today Reserve Bank of Australia (RBA) reported that the total amount of credit towards Australian private sector showed the same rate of increase in July as in June, matching preliminary estimates of a 0.4% rise. In annual terms, the indicator strenghtened 3.2% in July from a 3.1% increase during the previous month, marking its fastest rate of increase since March. This overall result was influenced mainly by the 0.4% increase of the housing sector credit, as it has registered a similar growth rate during each month since the beginning of 2013. Cosnumer credit figure remained flat during July, while business credit indicator rose by 0.4% in July on a monthly basis, as it grew 0.5% in June. Private sector credit has been increasing at a moderate pace, which, however, was still not strong enough in comparison with the recorded peak of 16.5% climb rate during late 2007. A positive signal was the constantly improving housing sector credit, alongside the low mortgage rates, which was also contributed to by the 225 basis-point benchmark rate cut by the RBA since November 2011.

The abovementioned report came out one day after the Australian Bureau of Statistics said that private capital expenditures rose by 4% during the second quarter of the year, outstripping expectations of a 1% increase.

Meanhile, the US dollar received solid support on Thursday, poised for a third weekly advance, after US Department of Commerce said that the revised Gross Domestic Product expanded by 2.5% during Q2 annually, exceeding expectations of a growth rate of 2.2%, while the preliminary estimate pointed a 1.7% expansion. Additionally, according to data by the Department of Labor, initial jobless claims in the United States dropped by 6 000 to 331 000 during the week ending on August 24th 2013, almost in line with experts’projections of a drop to 332 000 claims. The indicator remained close to its lowest point, recorded in October 2007.

Elsewhere, the Aussie was steady against the euro, with EUR/AUD cross dipping 0.02% to trade at 1.4829 at 8:20 GMT. AUD/NZD pair was also losing a mere 0.02% to trade at 1.1496 at 8:21 GMT.