AUD/USD continues to point upwards, as the Aussie has risen to the mid-92 range on Thursday. The Aussie continues to receive support from positive comments by RBA Governor Glenn Stevens on Wednesday. The currency has now climbed over 200 points in the past week. In Thursday news, US Unemployment Claims continue to drop, but Pending Home Sales disappointed with its second decline in three readings. There are no Australian releases on Thursday.
US Unemployment Claims continues to impress. The key indicator dropped to 311 thousand, its lowest level in over three months. The estimate was 326 thousand, marking the fourth straight week that the reading has come in below the forecast. The news was not as good from Pending Home Sales, with a reading of -0.8%. This disappointed the markets, which had expected a small gain of 0.1%. Earlier in the week, New Home Sales also lost ground in February, and concern is bound to increase about the health of the US housing industry.
RBA Governor Glenn Stevens gave an upbeat message on Wednesday and the Australian dollar has responded with gains. Stevens said that the economy has improved thanks to the lower exchange rate since last April and improved global economic conditions. Stevens reiterated that low interest rates are unlikely to rise in 2014, as the RBA tries to boost consumer spending and residential construction.
Ukraine's economy is in shambles as a result of the four-month political crisis. Prime Minister Arseniy Yatsenyuk acknowledged that the country is on the edge of bankruptcy, and GDP could drop by 3% this year. However, help is on the way. The IMF is set to sign a two-year loan of up to $18 billion, and the EU has offered a package of EUR 11 billion. Ukraine has already received two bailouts from the IMF since 2008, and will have to implement budget cuts and other measures in order to receive the new package from the IMF.
AUD/USD 0.9256 H: 0.9259 L: 0.9216
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