US: New Home Sales increase by 16.6% in May vs. 3.5% expected

• New Home Sales in the US rebounded sharply in May.
• US Dollar Index stays deep in red near mid-96s after the data.

New Home Sales in the US rose by 16.6% in May to a seasonally adjusted annual rate of 676,000, the data published jointly by the US Census Bureau and the Department of Housing and Urban Development showed on Tuesday.

This figure followed April's decline of 5.2% and beat the market expectation for an increase of 3.5% by a wide margin.

"The median sales price of new houses sold in May 2020 was $317,900," the press release read. "The average sales price was $368,800."

Market reaction

The greenback struggles to shake off the selling pressure after this data. As of writing, the US Dollar Index was down 0.48% on the day at 96.55.