USD Strengthens as US New Home Sales Beat Estimates at 682K in March

The US dollar received a modest boost following stronger-than-expected new home sales data for March 2026, which came in at 682,000 units on a seasonally adjusted annual rate, surpassing the 650,000 estimate and marking a sharp 7.4% rebound from February's revised 635,000 figure. The prior month had seen a significant 17.4% decline, making the March recovery particularly notable. Year-over-year, new home sales rose 3.3% compared to March 2025. Housing inventory at the end of March stood at 481,000 homes, down 0.4% from February and 4.6% lower than a year ago. Months' supply fell to 8.5 months at the current sales rate, a 6.6% decrease from February, suggesting improving demand dynamics. The data supports the narrative of a resilient US housing market and consumer sector, which could reinforce the Federal Reserve's cautious stance on rate cuts. Dollar bulls may find support in this data, though traders should weigh it alongside broader macro indicators. Near-term USD strength could persist if additional economic releases confirm underlying economic resilience.