Australian Housing Sector on the Slide,

but Aussie Dollar Stays Put

Economic data indicates Australian housing is on the slide, but in spite of this the Aussie dollar has fared well against rivals.

Pure FX - 31.05.2011

• GBPAUD - 1.5403 (1.5303 previous);
• EURAUD - 1.3355 (1.3348 previous);
• USDAUD - 0.9351 (0.9482 previous)

It's been a tough week in economic data. Results from the Australian housing and building sectors have both shown declines, while the Australian current account recorded an increased deficit in the first quarter of 2011.

In spite of this though, the Australian dollar has fared moderately against rivals, gaining more than 1.0% against the US dollar and remaining steadfast against the euro. This is chiefly down to increased risk appetite on the markets: as confidence in the global outlook increases, commodity currencies like the Australian dollar benefit. In fact the Australian dollar has lost just against sterling, giving up around 1.0% compared to a week ago.

In Australian data, it's possible the building and housing sectors could be suffering the after effects of the heavy floods in Queensland earlier this year. Growth in construction slowed to 0.7% in the first three months of 2011 according to the Australian Bureau of Statistics, compared to a nippier 1.4% growth previous.

New building permits meanwhile fell -1.3% last month, in addition to a -1.8% decline the month before. This negative data arguably contributed to an increase in Australia's current account deficit last quarter, rising to -$10.4bn from $8.1bn previous.

Looking ahead meanwhile, it's possible the situation in Greece could weigh in on the Australian dollar in coming days. Uncertainty regarding a Greek bailout could encourage the markets to seek safe havens, and so abandon riskier currencies like the Australian dollar.

Keep an eye then on the headlines about Greece to see how the markets react.

Peter Lavelle with foreign exchange specialist Pure FX.

Want to know more about this article? Interested to hear how it'd affect your money transfer? Then feel free to leave a comment and we'll respond as soon as possible!

Have A Question about the Australian Dollar Exchange Rate?

Want to ask or share your thoughts about this report? Leave a comment below.

Enter Your Title

Ask Your Question or Insert your Comments [ ? ]

Close Help Entering your story is easy to do. Just type!... Your story will appear on a Web page exactly the way you enter it here. You can wrap a word in square brackets to make it appear bold. For example [my story] would show as my story on the Web page containing your story. TIP: Since most people scan Web pages, include your best thoughts in your first paragraph.

Author Information (optional)

To receive credit as the author, enter your information below.

Your Name	(first or full name)
Your Location	(ex. City, State, Country)

Submit Your Contribution

Check box to agree to these submission guidelines.

(You can preview and edit on the next page)

Click here to see the rest of the form and complete your submission.

Don't have a comment but want to know more about the report or how Pure FX can help you?

Feel free to call them on +44 (0)1494 671800. Or simply fill in the form and ask Pure FX direct.

Get A Free Quote Please note that all fields followed by an asterisk must be filled in. First Name* First Name* Last Name E-mail Address* E-mail Address* City Country* Country* Country United States Canada ---------------- Afghanistan Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory British Virgin Islands Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos Islands Colombia Comoros Congo Cook Islands Costa Rica Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic East Timor Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guinea Guinea-Bissau Guyana Haiti Heard and McDonald Islands Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Ivory Coast Jamaica Japan Jordan Kazakhstan Kenya Kiribadi North Korea South Korea Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Federated States of Micronesia Moldova Monaco Mongolia Monserrat Morocco Montenegro Mozambique Myanmar Namibia Nauru Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Island Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda S. Georgia and S. Sandwich Isls. Saint Kitts and Nevis Saint Lucia Saint Vincent and The Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka St. Helena St. Pierre and Miquelon Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu U.S. Minor Outlying Islands Uganda Ukraine United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam US VIrgin Islands Wallis and Futuna Islands Western Sahara Yemen Yugoslavia (former) Zaire Zambia Zimbabwe Phone* Phone* Questions / Comments * Questions / Comments * Please enter the word that you see below.

Like This Page?