Dollar holds ahead of housing data

THE Australian dollar is treading water against its US counterpart ahead of key housing finance data and as the greenback firms slightly.

THE Australian dollar is treading water against its US counterpart ahead of key housing finance data and as the greenback firms slightly.

At 0635 AEST on Friday, the Australian dollar was worth 75.47 US cents, down fractionally from 75.50 US cents on Thursday.

The US dollar clung to slim gains against a basket of currencies on Thursday as investors took stock of former FBI Director James Comey’s testimony to the US Senate.

Comey accused President Donald Trump of firing him to try to undermine the bureau’s investigation into possible collusion between Trump’s 2016 presidential campaign team and Russia, but did not say whether he thought the president sought to obstruct justice.

Westpac’s Imre Speizer said the US dollar index was 0.2 per cent higher on the day, while the Australian dollar ranged sideways between 75 30 and 75.55 US cents.

The key event risk for Friday would be April housing finance data, he said. “April housing finance is expected by WBC (Westpac) to show owner occupier approvals down one per cent.” “(But) the real interest will be around investor loans which are likely to weaken from April as macro prudential tightening combines with a notable deterioration in buyer sentiment.” He said the Australian dollar “retains positive momentum, targeting the 0.7600 area (April highs) during the days ahead”.

The local currency is higher against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON FRIDAY

One Australian dollar buys:

* 75.47 US cents, from 75.50 on Thursday

* 82.99 Japanese yen, from 82.74 yen

* 67.29 euro cents, from 67.11 cents

(*Currency closes taken at 1700 AEST previous local session)

Originally published as Dollar holds ahead of housing data