The Australian dollar dropped following a firmer than projected US housing figures, which bolstered the US dollar.

US Commerce Department said housing starts escalated to 20.2% in April, to a seasonally adjusted pace of 1.14 million units, the highest since November 2007.

The Aussie stood at 79.14 US cents from Tuesday’s 79.97 US cents.

The currency reacted to the stronger greenback, “buoyed by upbeat data on housing starts,” said Kymberly Martin, Strategist at Bank of New Zealand.

The material has been provided by InstaForex Company – www.instaforex.com