Aussie positively stabilizes for first session in 3 against dollar

The Australian dollar fluctuated higher in a tight range against the US dollar during the Asian session, witnessing its rebound for the fourth session in six, from the lowest since January 3rd, following the developments and economic data by the Australian economy and on the threshold of developments and economic data expected on Thursday by the US economy, the largest economy in the world.

As of 02:18 GMT, the AUD/USD rose 0.13% to $0.7024 compared with the opening at $0.7015, after reaching a high of $0.7029 and a low of $0.7011.

We have followed the Australian economy reveal housing market data with the new Home Sales Index released by the Housing Industry Association, which showed a drop of 0.1% from a 1.0% rise in March. This comes hours ahead of the building permits reading, which may reflect a drop of 12.5% from a 19.1% rise last February, while the annual reading of the same index may show a drop to 25.1% versus 12.5%.

On the other hand, investors expect the US economy to release the preliminary reading of the single cost of labor index, which reflects a slowdown of growth to 0.9% compared to 1.9% in the fourth quarter, while the preliminary reading of the productivity of non-agricultural sectors may show an accelerated growth to 2.4% compared to 2.0%. In conjunction with the reading of the jobless claims index, which may show a decline of 10 thousand applications to 220 thousand applications during the week ending last Saturday.

To the release of the factory demand index, which may reflect a rise of 1.0% against 0.5% decline in February, this comes ahead of the release of the US Treasury Department's semi-annual report on international economic and exchange rates, hours after the (FOMC) meeting held in late April and early May in Washington.

Fed monetary policy makers have agreed to keep interest rates between 2.25% and 2.50% for the third consecutive meeting as they go on reducing the cuts in bond re-purchases before the program ends in September. Fed Chairman, Jerome Powell, said that the committee would be patient about raising interest rates in the coming period.

In a press conference following the Federal Committee meeting, Powell said that the US economy and the US labor market will remain strong, noting that the overall inflation in the US have declined and are running below 2%, adding that there is no need to raise or lower the federal funds rate, while emphasizing the independence of monetary policy.