The Australian dollar is pushing higher today during the American session on the back of mixed economic data out of the US.
At 4.26pm (GMT) the Aussie dollar was trading at US75.43c up 0.51 percent from close of trade on Friday.
The Core Personal Consumption Expenditures index in the US rose 0.1 percent against analysts’ expectations for 0.2 percent rise and well down on the previous months figure of 0.3 percent.
The Personal Income index surprised to the upside coming on at 0.2 percent against a consensus of 0.1 percent although well down on last month’s figures of 0.5 percent.
The most widely watched figure today was the yearly personal consumption index, which came in at 1.7 percent and seems to be moving towards the US Federal Reserve’s target of 2 percent, which may justify a rate hike in April.
Also adding to the case for an interest rate hike was the latest pending home sales figure released to the market, which came in at 3.5 percent, almost triple the predicted figure of 1.2 percent, which may indicate a change in trend for the housing market as the number, had been on the decline for nearly 10 months.
Tomorrow US Fed Chair Janet Yellen will give a speech on economic and monetary policy with investors waiting to see if she will change her tone.
In her last speech, the Fed president sounded a little down beat on the economy and noted that the amount of rate rises expected this year would be lower than first thought.
Since then, a majority of fed board members have called for the central bank to continue raising rates so it will be interesting to see if Yellen jumps on board