AUD/USD Holding Slightly Lower, Largely Ignoring Better Housing Data

AUD/USD sits a touch above session lows in recent dealings. We were last in the 0.6355/60 region, against session lows of 0.6354. We aren't too far away from Wednesday lows from last week at 0.6331.

• Much of the focus remains on broader USD trends, with the BBDXY ticking higher in the first part of trade today. The index is above 1275, hitting fresh cyclical highs earlier. Broader USD trends have been supported by a further tick higher in US yields. We sit less than 1bps firmer for most parts of the curve, down from session highs from a yield standpoint.
• Earlier Cleveland Fed President Mester spoke and stated that one more hike was likely this year, although the move is seen as data dependent.
• For AUD we have had better than expected housing data out a little while ago, but this hasn't impacted sentiment. Home loans rose 2.2% m/m (+0.2% projected), while building approvals were +7.0% m/m (+2.5% forecast). ANZ job ads were -0.1% m/m, versus +1.7% prior.
• Regional equity markets are tracking lower, while US futures are off session highs, but close to flat. Yen is outperforming in the G10 space, albeit at the margins. AUD/JPY was last at 95.25/30.
• Coming up later is the RBA decision, no change is expected.