AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
Market Review - 04/05/2009 21:15 GMT
U.S. dollar falls after release of stronger-than-expected U.S. economic data
The dollar fell broadly on Monday after release of better-than-expected U.S. economic data and rising U.S. and European equity markets, which prompted investors to take on more risk in hopes that the worst of a deep world recession may be coming to an end. Data from the U.S. showed pending sales of existing homes posted their first gain in almost a year in March while spending on construction projects unexpectedly rose for the first time in six months in April as increases in commercial and government projects overshadowed an ongoing drop in home building.
Strong economic data from U.S. reduced safe-haven demand for greenback and the ICE future dollar index slid 0.91 percent to 83.771 in late New York trading, while the single currency, British pound, Swiss franc and New Zealand dollar rose to session highs of 1.3426, 1.5025, 1.1253 and 0.5772 against the dollar respectively before stabilising.
The Australian Bureau of Statistics showed house prices in the country fell by a record annual amount in the three months through March as the nation’s first recession since 1991 and surging unemployment sapped demand for property. An index measuring the weighted average of prices for established houses in eight cities slumped 6.7 percent from a year earlier, after dropping a revised 3.9 percent in the fourth quarter. The Australian dollar fell to session lows of 0.7302 against the dollar and 72.67 versus the yen after the announcement but rallies in U.S. and European stock markets lifted the aussie to six-month highs of 0.7412 and 73.57 versus the U.S. dollar and yen respectively.
In other currencies, Mexico’s peso rallied versus the greenback to around around 13.2400 on Monday after Health Minister Jose Cordova said the flu outbreak is in a ‘declining phase’ and appears to have ‘contained itself’. He also said the swine flu shows a 4 percent mortality rate, compared with 70 percent for the SARS virus.
U.S. equities rose on Monday as investors bet that the government’s stress tests will not force banks to raise as much capital as originally thought, as well as hopes that the economic slump was abating. By the end of the New York trading, the Dow Jones industrial average rose 214 points or 2.61 percent and closed at 8,426.
Economic data releases on Tuesday include Australia RBA rate decision, U.K. PMI construction, eurozone PPI, and U.S. ISM (non-manufacturing). Australia’s central bank is expected to leave its cash rate steady at a record low of 3.00 percent to save its ammunition for tougher times ahead. At 14:00GMT, Federal Reserve Chairman Ben S. Bernanke will testify before the Joint Economic Committee about the economic outlook.
U.S. dollar falls after release of stronger-than-expected U.S. economic data
The dollar fell broadly on Monday after release of better-than-expected U.S. economic data and rising U.S. and European equity markets, which prompted investors to take on more risk in hopes that the worst of a deep world recession may be coming to an end. Data from the U.S. showed pending sales of existing homes posted their first gain in almost a year in March while spending on construction projects unexpectedly rose for the first time in six months in April as increases in commercial and government projects overshadowed an ongoing drop in home building.
Strong economic data from U.S. reduced safe-haven demand for greenback and the ICE future dollar index slid 0.91 percent to 83.771 in late New York trading, while the single currency, British pound, Swiss franc and New Zealand dollar rose to session highs of 1.3426, 1.5025, 1.1253 and 0.5772 against the dollar respectively before stabilising.
The Australian Bureau of Statistics showed house prices in the country fell by a record annual amount in the three months through March as the nation’s first recession since 1991 and surging unemployment sapped demand for property. An index measuring the weighted average of prices for established houses in eight cities slumped 6.7 percent from a year earlier, after dropping a revised 3.9 percent in the fourth quarter. The Australian dollar fell to session lows of 0.7302 against the dollar and 72.67 versus the yen after the announcement but rallies in U.S. and European stock markets lifted the aussie to six-month highs of 0.7412 and 73.57 versus the U.S. dollar and yen respectively.
In other currencies, Mexico’s peso rallied versus the greenback to around around 13.2400 on Monday after Health Minister Jose Cordova said the flu outbreak is in a ‘declining phase’ and appears to have ‘contained itself’. He also said the swine flu shows a 4 percent mortality rate, compared with 70 percent for the SARS virus.
U.S. equities rose on Monday as investors bet that the government’s stress tests will not force banks to raise as much capital as originally thought, as well as hopes that the economic slump was abating. By the end of the New York trading, the Dow Jones industrial average rose 214 points or 2.61 percent and closed at 8,426.
Economic data releases on Tuesday include Australia RBA rate decision, U.K. PMI construction, eurozone PPI, and U.S. ISM (non-manufacturing). Australia’s central bank is expected to leave its cash rate steady at a record low of 3.00 percent to save its ammunition for tougher times ahead. At 14:00GMT, Federal Reserve Chairman Ben S. Bernanke will testify before the Joint Economic Committee about the economic outlook.
