On Thursday, AUDUSD plummeted in response to the statistics published in the morning.
The Australian Dollar remains under pressure against the USD on Thursday afternoon, although is should be admitted that the most part of “emotional” sales took place in the morning. The current quote for the instrument is 0.7298.
The statistics showed that the Building Approvals in Australia in July significantly decreased (by 5.2% m/m) after a good improvement in the previous month (+6.8% m/m). Investors did expect that the indicator might fall, but as much as it really did.
On YoY, the indicator lost 5.6% after adding 1.6% the month before.
On one hand, it could be influenced by a seasonal factor, which was confirmed by the Private Capital Expenditure (lost 2.5% q/q). On the other hand, the price factor is evident – the cost of approvals added 7.1% in July, particularly for nonresidential premises it skyrocketed by 31.5%.
At the same time, investors are closely following the NAFTA negotiations between the USA and Canada. It is reported that negotiations are quite active and intense. This issue is very important for global trade relations, that’s why all decisions made during the negotiations will influence all participants of the trade market one way or another.