The Australian dollar is trading lower today after strong data out of the US raised speculation the US Federal Reserve may bring forward their next anticipated rate hike.
At 4.26pm (GMT) the Aussie dollar was trading at US72.20c down from US72.34c in yesterday’s trade.
The latest durable goods number from the US came flat at 0.0 percent against analysts’ expectations for a figure of -0.7 percent, while personal income, the total income received by individuals rose by 0.3 percent against a consensus of 0.2 percent.
The stand out figure of the day was the home sales figure for the month of November, which hit the market at 4.3 percent, more than double the expected figure of 2 percent.
The numbers are likely to give the US Fed something to think about on the question of interest rates as they ring in the New Year, as any hikes in the Feds words are “data dependent”
The Aussie dollar held up pretty well above the US72c mark considering the positive news out of the US, which some attributed to the rebound in oil prices and Iron ore today, with the latter chalking up its 4th consecutive day of gains.
The CB leading indicator, a measure of overall economic activity due out of Australia tomorrow may create some volatility in the Australian dollar, but analysts from Fibogroup forex brokers predict that commodity prices will be choose the direction of the local currency as we head into the new year.