AUDUSD To Continue Nourishing Amid Home Loans Economic Release

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The Australian Dollar (AUD) affirms its position against the US Dollar (USD) after home loan news broke out last Friday. With a decrease in negative stats, the rate of home loans released by the Australian Bureau of Statistics ended on -1.2% in April, as compared to -2.5%, the month before. It, however, didn’t meet the expectation of economists which was -0.2%.

However, the interest rates announced by the Reserve Bank of Australia shows a major cut which leads to a devaluation of the country’s currency. Normally, a hawkish attitude of the Reserve bank is considered as a sign of a bullish market for the Australian Dollar. However, the RBA seems to have a dovish view after suggesting a lower interest rate.

On the other hand, the Australian Bureau of Statistics releases somewhat favorable news for the Australian dollar. The data tells that the trade balance improved during the last quarter and stayed around 5745 M, as it was 4820, the quarter before. The economists also indicated an uprise in the said data by giving a value of 4820 M. It is to be noted that the trade balance represents the difference between import and export levels of the country. Both imports and exports levels stayed in coherence followed by a reasonable domestic demand in terms of imports and an unchanged or improved demand in exchange for exports of the country. So, the pair is believed to start moving positively.

Conclusion

Trading AUDJPY may not be a better idea for a short term position. However, it may get a reversal around 1.0300 and start recovering again. If this happens, trading pair for a long term position would give positive results.

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