Aussie Unchanged Despite Weak Data

The Australian Dollar held firm in the Asian trading, remaining unchanged against its US counterpart despite the release of downbeat Australian consumer sentiment data.

The AUD/USD was up 0.03%, trading at $0.7438 as investors seemed to shrug off the news that Australia’s consumer sentiment dropped 2.2% in March, following a 4.2% increase recorded in February.

The Aussie enjoyed relative investor support despite a separate report released overnight showing that home loans in Australia fell by 3.9% in January. This was a disappointment to the markets who had expectations for only a 2.3% decline and follows the 2.7% increase in December, whose figure was revised from up from a 2.6% gain.

The Australian Dollar has found itself under increasing pressure recently, primarily because of lingering fears over the health of the Chinese economy. China is Australia’s largest trading partner and this week’s news that exports from China fell 25% to their lowest level since May 2009 has raised concerns over the economic health of the entire Asian trading region.

Today’s AUD/USD Support and Resistance Levels:

Support 1- 0.7428, Support 2 – 0.74212

Resistance 1 – 0.74402, Resistance 2 – 0.74456

What to Watch Out For:

Later tonight the Melbourne Institute (MI) Inflation Expectations data is released. This measures the percentage that consumers expect the price of goods and services to change during the next 12 months.  Unless a wild difference to the 3.6% anticipated, this data is not expected to have a dramatic effect upon the Australian Dollar.

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Daniel Simmons