Aussie higher despite downbeat Australia report; Data from China supports
On Wednesday the Australian dollar was higher against its U.S. rival, despite the release of downbeat Australian building approvals data. Earlier, data from China showed that consumer sentiment in the world's second largest economy improved in September to its highest level in over a year.
Meanwhile, sentiment on the greenback weakened ahead of a speech by
Federal Reserve Chair Janet Yellen later in the day.
AUD/USD hit 0.7021 during late Asian trade, the session high; the pair subsequently consolidated at 0.6996, rising 0.14%.
On Wednesday, the Australian Bureau of Statistics said that building approvals dipped by 6.9% last month, compared to expectations for a 2.0% drop. Housing approvals rose by 7.9% in July, whose figure was revised from a previously estimated 4.2% gain.
Consumer sentiment in China improved in September to its highest level in over a year, a gauge signaled Wednesday, as households shrugged off swings in the country's stock market.
The Westpac MNI China Consumer Sentiment Indicator climbed to 118.2 in September from 116.5 in August, marking the best reading since May 2014.
Households appear to have responded positively to recent policy developments, including rate cuts last month and proposed reforms to the country's state-owned enterprises, Westpac said in a statement.
Both measures of business conditions made
solid gains in September with Business Conditions in One Year at the
highest in nearly two years and the longer-term Business Conditions in
Five Years also stronger, Westpac said.
The positive reading despite the weakness in equity markets could also be explained by the fact that only around 11% of the respondents who live in urban areas identify themselves as being invested in the stock market.
Meanwhile, market players looked ahead to comments by Fed Chair Janet Yellen due later in the day after mixed messages from several U.S. central bank officials last week led to uncertainty over whether the Fed will lift short term interest rates this year.
