The Aussie dollar’s rise was short lived yesterday as positive data out of Australia and China failed to inspire the currency.
At 7.25am (GMT) the local currency was trading at US76.15c down from a high of US76.66c in yesterday’s trade.
Building approvals out of Australia for the construction of new homes came in slightly ahead of expectations yesterday at -3.2% against a consensus of -4% providing some temporary support to the local currency.
JP Morgan economist Ben Jarman said the figures indicate the continuing growth of the property market is being underpinned by interest rates,
"There's at least one channel where the RBA is getting some sort of result," he said.
"What's missing is the spill-over from housing to consumption behavior."
Providing a further boost to the Aussie was the release of the official Purchasing Managers’ Index(PMI) from China which rose to 50.1 in March, beating estimates for a number of 49.7 and up from last month’s number of 49.9.
A number above 50 shows the economy is expanding while a number below 50 shows a contraction.
Although the number was positive, investors should proceed with caution and see if the Chinese economy can back it up with a few more good numbers over the next few months,
“The China PMI is above consensus,” Alan Richardson, a Hong Kong-based money manager at Samsung Asset Management, which oversees about $112 billion, said by phone. “We need a few more months of acceleration above 50 to suggest the economy is sustainably recovering.”
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