Aussie Gains on Better-Than-Expected Housing Report

The Australian dollar rose today after the release of the housing report that was better than expected by market participants. The positive data reduce the probability of an interest rate cut.

Building approvals fell 2.5 percent in June from May (seasonally adjusted). The reading was worse than the May data that showed growth by 27 percent, but much better than the anticipated decline by 14.6 percent. The report spurred speculations that the Reserve Bank of Australia would refrain from lowering interest rate during its next policy meeting on August 7.

AUD/USD advanced from 1.0491 to 1.0515 and AUD/JPY went up from 81.99 to 82.18 as of 11:30 GMT today.

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