The AUD/USD price remained on a standstill after Australia’s home loans data. The pair dipped 0.62% from Wednesday after the release of ADP Nonfarm Employment Change data.
Australia Home Loans
The AUD/USD pair was in the red on Friday after the release of Australia’s Investors lending data. According to data by the ANZ, investors lending for homes hit a six-year high in May. This was boosted by a surge in demand for property.
According to the Australian Bureau of Statistics, new housing loan commitments rose 4.9% in May to $32.6 billion. This was driven by an increase in investor housing loan commitments.
New loan commitments for investor housing for May was hovering near records high. The loan commitments spiked 13.3% from 2.1% to $9.1 billion. This was the highest level reached since June 2015.
The value of investor loan commitments was up 116% YoY in May 2021 after hitting a two-decade low in May 2020. Victoria and New South Wales posted the largest investor loan commitments in May 2021. Each was up by 17.4% and 12.1% respectively.
New loan commitments for owner occupiers hit its highest level in May 2021. It edged 1.9% higher to $23.4 billion. However, value of loan commitments for residential land and the construction of new dwellings dipped for the third consecutive month.
US Inflation Concerns
The AUD/USD edged lower after the release of better-than-expected US Initial Jobless claims. The initial jobless claims for the week ending June 26 slipped to 364,000 from 415,000 in the previous week. It was stronger than the 390,000 forecast.
US ISM Manufacturing Purchasing Managers Index for June dipped to 60.6 from the previous 61.2. This was weaker than the estimated forecast of 61.0. However, the ISM Manufacturing prices for June increased to 92.1 from 88.0 surpassing the 88.5 forecast.
The AUD/USD pair will react to the US Nonfarm Payrolls for June later in the day. Analysts expect the numbers to increase to 700,000 from 559,000 in the previous month.
Investors are looking ahead of US Employment Rate for June. They are hoping to get clues on whether the Fed will consider tapering its monetary policies earlier than expected. Analysts expect a slight decline in the rates from 5.8% to 5.7%.