AUD/USD has dropped to around 0.6670, the lowest since February 9. The currency pair has been trending lower throughout the European and American sessions on Wednesday as the US dollar gains ground.
The greenback is benefiting from upbeat US economic figures. Building Permits hit an annualized level of 1.55 million in January and Housing Starts stood at 1.57 million, both above expectations. The Producer Price Index rose by 0.5% and Core PPI advanced at the same rate in the first month of 2020.
US Treasury yields have stabilized as markets shrug off fears of the coronavirus outbreak. The Chinese government has touted new measures to stimulate the economy while transport links remain shut in Hubei – the epicenter of the disease.
Earlier in Australia, wage growth rose by 0.5% in the fourth quarter, within expectations. Further headlines from China – the world’s second-largest economy and Australia’s No. 1 trade partner – are awaited.
At current levels, Aussie/USD is trading close to the decade low of 0.6661 recorded earlier in February. The daily high of 0.6707 serves as resistance.