Home Loans Improve: AUD/USD Lower
Rowan Crosby • 1 min read
Home loans have been a bit of a worry in recent times in Australia. Lending standards have really tightened on the back of the housing bubble in NSW and VIC.
Today’s housing data was slightly better than expected and showed that home loans are fighting back. That might ease some pressure on borrowers. For July we saw +0.4% vs -0.1% expected.
The AUD/USD hasn’t moved much on the data and is ticking lower on the day. Still below the 0.7200 mark.
Despite much positive news this week, we haven’t pushed higher than 0.7200 in any real way.
Like I said yesterday if we have strong GDP and the USD pulls back. Yet we can’t rally. To me, that is saying we have underlying weakness.
Given how tight things are we are starting to look like this might turn into a breakout. Sometimes the tight areas of volatility can quickly expand.
Tonight’s NFP might be the catalyst for that. Or if Trump unleashes his tariffs, we might see the same type of breakout.
I’m bearish longer-term but watch the USD closely as it will lead the move.