Aus dollar pushed higher by housing data; NZ dollar broadly firmer

The pound to Australian dollar exchange rate is 0.26 pct in the red at 1.6872.

The euro to Australian dollar exchange rate is meanwhile a percent lower at 1.4350 as the euro is sold off in aggressive fashion following today's poor economic statistics.

(PS: The above are spot market quotes; your bank will affix a discretionary spread to the figures when passing on a retail FX rate. However, an independent FX provider will guarantee to undercut your bank's offer, thereby delivering up to 5% more FX. Please find out more here.)

Building approvals help Aussie advance

The Australian dollar managed to drive the GBPAUD rate lower after building approvals smashed expectations at 14.4% m/m, and it is unlikely that sterling can make a recovery during today's trading.

"With sterling on the back foot, we expect the rate to decline ahead of UK PMI data due tomorrow," warns Sasha Nugent at Caxton FX.

Boris Schlossberg at BK Asset Management says today's data is likely to restrain the RBA from any further rate cuts for the foreseeable future.

"The AUD/USD rose to 9510 in London dealing as it appears to have found support at the 9500 level," says Schlossberg.

A word of caution on Australian housing

ANZ Research analyst Paul Braddick does however caution on the outlook:

"We still expect a desynchronisation of state housing market and dwelling type cycles will limit the rebound in dwelling investment in this cycle.

"Solid growth in building approvals foreshadow strong near-term growth in home building activity. However, this will be insufficient to offset the looming decline in mining investment."

That said, Braddick does concede that, "housing market momentum (sales, prices, building activity) is improving rapidly and will continue to be supported by an extended period of low interest rates."

RBNZ hold rates as expected

Turning to the New Zealand dollar we note the NZD remains solid.

The RBNZ decided to keep rates on hold at 2.50% and maintained their hawkish bias saying rates are likely to rise in 2014.

"Considering this is no real news, it had minimal effect on the rate and sterling managed to close above 1.94. The rate has dropped below 1.94 so far this morning and we expect sterling remain on the back foot in today's session," says Nugent.