Australia: Building approvals for Nov surged 11.7% - TDS

FXStreet Team FXStreet

Analysts at TDS note that Australian building approvals for Nov exceeded even TD’s top of the market +2%/m forecast, jumping +11.7% with total building approvals the 3^rdhighest on record.

Key Quotes

“In contrast, the market was forecasting a 1% decline. In percentage terms, apartment approvals rose 30%/m, while housing approvals dropped 2%. By geography, Victoria accounted for nearly the entire increase, with total approvals rising 38%, but declines seen in NSW, QLD and SA. At face value, it does suggest the unwind in the housing construction boom is not as bad as initially feared. However, we would be more bullish on today’s outcome had the increase in building approvals not been so narrowly focused to apartments and Victoria.”

“ANZ Weekly Consumer Sentiment jumped more than 4.5% to 122, the highest level since Nov 2013. This series has been trending higher since Sep 2017. Let’s see if the positive sentiment over the prior months is supportive for Aussie retail spending, data for Nov out on Thurs.”

“ANZ Job Ads for Dec fell 2.3%. This continues the downward trajectory in job ads that begun in May 2017. Plotting this series vs ABS headline employment suggests a monthly increase closer to 15k/mth.”

Author

FXStreet Team

FXStreet

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.