AUD/USD keeps losses after below-forecasts Aussie home loans data

• Aussie home loans data brings no cheer to the AUD bulls. 
• AUD/USD remains in the red near 0.6980. 
• The drop in home loans may accentuate RBA’s concerns regarding consumer spending. 

AUD/USD continues to trade in the red following the release of the dismal Australian home loans data — a lead indicator for housing prices. 

Home loans fell 2.5% in March, reversing the 2% rise seen in February. The markets were expecting a 0.5% rise. 

The latest data will likely boost Reserve Bank of Australia’s (RBA) concerns over steep house price falls and the resulting slowdown in consumer spending. 

The central bank held rates unchanged at 1.5% last week, but is widely expected to cut rates by 50 basis points in the second half of this year. 

The dovish RBA expectations coupled with heightened Us-China trade tensions will likely keep the AUD on the defensive over the next few weeks. 

As of writing, the spot is trading at 0.6983, representing 0.20% losses on the day, having printed a high of 0.70 earlier today. 

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