The Australian dollar sank versus its U.S. counterpart, erasing the previous gains and dropping from the highest level since November 2009, after the government report suggested that the conditions on the housing market may be worsening.

The amount of the loans for housebuilding and buying declined more than expected, falling 1.8 percent from January. This decline may have the negative impact on the Australian currency as the weakening house market may result in the stalling economy and the decreasing consumer demand. But the durability of the nation’s economy looks to be strong enough to let some experts claim that the Aussie’s drop is temporary and the currency can reverse its downward movement in the near future.

AUD/USD tumbled to 0.9280 as of 12:26 GMT after opening as high as 0.9360. EUR/AUD traded near 1.4637 up from the opening level of 1.4549.

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