The Australian dollar is holding ground today even though the Greek crisis, which sent markets tumbling worldwide, is threating to cause havoc in the financial world, which usually has investors flocking to the safety of the US dollar.
"(The local currency) held up well as stock markets were under pressure all around the globe," Westpac senior currency strategist Sean Callow said.
Also helping the local currency was the latest building approvals number which came in at 2,4% against expectations of 1% showing the recent cut in interest rates is adding more pressure on housing prices and further inflating the bubble.
The figure will play on RBA governor Glen Stevens mind as the central Bank meets next week to announce their latest interest rate decision with many analysts predicting that the only reason the RBA won’t cut rates further is out of fear of further inflating the property market.
OANDA Australia and Asia Pacific senior trader FX Stephen Innes said Greece was still the main topic with all eyes focused on Sunday’s referendum where the Greek prime minister is hoping for support from the local population to push through his agenda.
"Traders are now shifting focus to this weekend's referendum," Mr Innes said.
"While the proposal is still on the table, Germany has sent an unambiguous message that there will be no deal from them until Sunday's referendum." He added.
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