Aussie Up, as Building Approvals Surge
The Australian dollar gained significantly against the U.S. dollar in the Asian session on Monday, as the building approvals increased by a massively impressive number of 10.8% in the month of August, against the expected figure of 4.1%.
Considering the previous recorded data of July, where the building approvals actually contracted by 6.3%, the numbers that came out today surely were a positive sign for the Australian economy. This shows that the lending power is improving, where consumers are also borrowing and investing either in terms of housing or any other sector in the economy.
After closing near the 0.8902 area on Friday, the Aud/Usd gained nearly 65 points today so far where it has tested the critical resistance level of 0.8970, where bulls may take the pair upwards and provided that it sustains above this level, it would enter a short-term bullish channel.
The euro has remained unmoved today so far, where it is trading around 1.3202 level which is just above its psychological support of 1.3200.
The key economic indicators to follow today are the Italian and Spanish manufacturing PMI where a better than expected outcome could give a small boost to the pair where it may test 1.3263 and 1.3285 if it manages to move above 1.3234.
The British pound made a sudden bullish move today where it managed to gain nearly 50 points against the greenback after which it is currently hovering above the important level of 1.5534, where investors are eying the leading economic indicator of Manufacturing PMI of the U.K. economy.
The manufacturing sector of the U.K. economy is expected to grow partially in August, where the reading better than 55.2 figure could surely give a good bullish move to the pair where it may go on to test 1.5552, 1.5567 and 1.5583.
The U.S. military forces are ready to attack Syria against the use of chemical weapons, as the U.S. president has hinted that the U.S. should take action against the Syrian government.
Technically the U.S. dollar is bullish, but if this military action takes place the stock markets would most probably fall and would lead to a bullish movement in gold, oil, and as well as the greenback. Major currencies are expected to fall; therefore, investors may be taking this bullish movement in these pairs as a good opportunity to sell on top.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org