Yahoo Finance AUD/USD and NZD/USD Fundamental Daily Forecast – Australian Building Approvals Crush Forecast
The Australian and New Zealand Dollars are trading mixed shortly after the U.S. opening. Lower gold prices are hurting the Aussie while the Kiwi continues to rise on aggressive short-covering and optimism over the appointment of a potentially hawkish new Reserve Bank of New Zealand Governor.
At 1239 GMT, the AUD/USD is trading .7830, down 0.0010 or -0.13% and the NZD/USD is at .7183, up 0.0009 or +0.12%.
Early in the session, Australian Building Approvals blew away the -0.9% estimate with a robust 11.7% reading. The previous report was revised down 0.1%. ANZ Job Advertisements came in at -2.3%. The previous report was revised lower to 1.1%.
Australian Dollar investors showed a muted reaction to the news that the Australian construction sector is likely to carry the economy in 2018. The better-than-expected data is expected to feed into the broader economy over coming months and will therefore likely provide a supportive underpinning to the Aussie Dollar.
There was no fresh news from New Zealand so the rally was supported by aggressive technical buying. As long as the momentum is up and investors are willing to buy strength, the NZD/USD will continue higher. A dramatic technical reversal in reaction to major news will be the first sign that the buying is subsiding and that the selling is getting stronger.
On Tuesday, investors will get the opportunity to react to three minor reports in the U.S. including the NFIB Small Business Index, JOLTS Job Openings and IBD/TIPP Economic Optimism.
We don’t expect much of a reaction to the reports as investors prepare for Friday’s U.S. consumer inflation report.
This article was originally posted on FX Empire
