The Australian dollar dropped against its U.S. counterpart on Wednesday, as the greenback found broad support ahead of the Federal Reserve's monthly policy statement due later in the day.
On Tuesday the U.S. Commerce Department said that the amount of building permits
issued in May rose by 11.8% to 1.275 million units from
April’s total of 1.140 million, hitting almost eight-year high. The data gave an impression that the economy is picking up.
However, the report also signaled that U.S. housing starts dropped by 11.1% in May to hit 1.036 million units from April’s total of 1.165 million units, worse than expectations for a decline of 3.1% to 1.100 million.
Aussie touched 0.7709 during late Asian trade, the lowest level since June 15; AUD/USD subsequently consolidated at 0.7716, dipping 0.47%.
Meanwhile, Australian stocks were higher Wednesday, with the
S&P/ASX 200 up 0.8% after a mildly negative close the previous
session, as bank stocks made a strong showing.
Japanese stocks traded slightly positive, however off their opening highs, with a sense of caution growing ahead of this week’s policy decisions from the U.S. and Japanese central banks. The 225-component Nikkei Stock Average was 0.1% higher about 20 minutes into the trading day, while the broader Topix was up 0.2%.
