Australian dollar rises ahead of My speech
The Australian dollar is slightly higher in the Asian trading session on the back of strong real estate data but, is expected to face a big test later today when UK Prime Minister delivers a speech on her governments plans to leave the European union. At 4.22pm (AEDT) the Aussie dollar was trading at US75.10c up fromUS75.75c in yesterday’s trading. Data released earlier today from the Australian Bureau of Statistics showed the number of Australian home loan approvals jumped 0.9 per cent in November against analysts’ expectations for a figure of 0.3 percent. The figures clearly show that the Australian property market is powering ahead, underpinned by record low interest rates and shows no sign of slowing down. From the UK today, Prime minister Theresa May will deliver a televised speech and depending on the tone, is expected to cause volatility in the currency markets which includes the Australian dollar. There are fears that she may take a tough stance and demand a clear break from the EU, ignoring the fact that her country may lose access to the single market. Rodrigo Catril, currency strategist at the National Australia Bank noted that the PM may choose to play it safe, so not to spook the markets and keep some ammunition in reserve ahead of important discussions, “The PM is expected to walk a fine line between providing enough information on the government’s intentions without necessarily showing too much of Britain’s negotiating hand ahead of official discussions with the EU,” he said.