The Australian dollar bared its fangs as it began to dominate the major currency markets despite being squeezed by slightly disappointing domestic economic data.
The Australian dollar is currently showing overall strength across the major foreign exchange trading boards. The most outstanding performance can be seen in the AUD/JPY pair which jumped by 0.24 percent, while AUD/USD also rose around 0.16 percent so far today.
Despite the cheerfulness of the currency market, the Australian construction sector gave a bit of a bitter surprise when building permits fell by 3.4 percent. This figure was much lower than experts' forecasts, thus giving an early indication of the slowdown in the economic momentum at the household level for now.
The mining industry, which is usually the heart of Australia's strength, also recorded a profit decline of 9.1 percent this quarter. However, the non-mining sector was still able to smile with an increase of 3.7 percent, indicating that the country's economic slowdown is not widespread.
The strengthening of the Australian Dollar has a direct impact on the cost of imported goods and also on travel plans for those dealing with the country. For local investors, this is a critical time to observe whether this momentum can bring the currency value to a higher target level.
Overall, the current direction of the market for the Australian currency remains in the “Bullish” zone or upward with a positive bias. Despite some disruption from domestic economic data, investor confidence in the long-term potential of the Australian Dollar seems to have not faded.
