A$ Remains Supported Despite Soft Data

AUDUSD has risen 0.1% on the back of mild USD selling. It reached a high of 0.6559 following the intraday low of 0.6527. It is currently around 0.6548 and hasn’t been impacted by the weak building approvals data. The USD index is 0.1% lower.

• AUDJPY is down 0.1% to 91.71 but AUDNZD is up 0.2% to 1.0816. Aussie is steady versus the euro and pound at 0.6108 and 0.5294 respectively.
• Equity markets are mixed across the APAC region with the ASX flat, the Nikkei down 0.5% but the Hang Seng up 0.1%. S&P e-minis are up 0.3% from Friday’s close. Oil continues its post-debt deal rally with Brent up 0.4% to $77.39/bbl. Copper is flat and iron ore is stable around $102-103/t.
• Building approvals in April came in significantly weaker than expected. While they are negative for the growth outlook, they signal further upside pressure on rents and thus overall inflation. See Home Building Yet To Respond To Housing Shortage.
• Later the European Commission May survey, March US house prices and May US consumer confidence & Dallas Fed manufacturing are released. Also, Fed’s Barkin speaks on monetary policy. Tomorrow the focus in Australia will be RBA Governor Lowe’s appearance before the Senate Economics Committee and the April CPI.