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Video for April 7th, 2008 (3 min 12 sec): Aussie Gains on Greenback; EUR/USD Pares Earlier Losses on Euro-zone Sentix Investor Confidence Data AUS Building Approvals Almost Flat for February, Construction Section in Contraction This week's fundamental docket starts in Australia. The housing sector has seen some cooling and volatility during the end of last year. The Construction PMI has seen steady decline since last December and contracted for the first time this year in March. Housing approvals were up 0.1% in February after a strong 1.9% growth in January. AUD/USD - Aussie Gains on Dollar and Yen Despite Data
The Aussie started this week pressured as its construction PMI showed contraction, and building approvals were expectedly anemic. However, the Aussie resumed its uptrend overnight and into US trading session. From the overnight low, the pair climbed 70 pips by 1:45PM EST. EMU Sentix Investor Confidence Unexpectedly Increases to 4.1, Boosts Euro A survey the measures investor's confidence surprised forecasts and increased to 4.1. Investor expectations over the next six months improved to -16 from -19.25 in March. Following the news, the EUR/USD pair saw a boost. EUR/USD - Euro Pares Earlier Losses to Dollar
The EUR/USD pair started the week lower, but gained overnight after the European releases. After dropping 80 pips, the euro pared its losses against the greenback as a gauge of investor confidence in the Eurozone reflected a surprising increase in optimism. Also, German's industrial output bested expectations. German Industrial Production Rises 0.4% in February Germany's goods-producing sector has been a beacon of resilience. Industrial production numbers for February surprised economists who believed they would decline. One caveat is that manufacturing orders declined in the same month indicating demand may be softening. CAN Building Approvals Decline 1% Building approvals in Canada slipped unexpectedly in February. The data was skewed but sharp declines in non-residential construction intentions in Ontario. The rest of the country showed an increase of 9.8% in the total value of building permits. CAD/JPY - Loonie Gains 150 Pips on Yen, Then Retreats
Overnight, the Canadian Dollar gained while oil and commodities prices were climbing. The CAD/JPY gained 150 pips from the start of the session, but retracted after failing to break through a previous high set last Friday. The Canadian dollar was pressured during the American trading session after the poor CAD/JPY - 4-Hour Chart Reveals Double Top Formation
A Double Top Pattern is forming for the CAD/JPY pair after a 500 pip upswing since the beginning of April. Also, the RSI failing to return to overbought level of 70 indicates momentum is weakening for the Loonie Bull and Yen Bears. This pair has enjoyed an almost uninterrupted climb as oil prices hover around record high levels and as commodity prices have been elevating, but has no been consolidating. Upcoming Releases Tonight, New Zealand and Australia both release Business Confidence figures. Japan will release its Economy Watcher's Survey, which measures workers outlook on the economy. Tomorrow Canadian housing starts will be followed by US pending home sales. Also, the Fed will release the FOMC meeting minutes for the March 18 decision to cut rates by 3 quarter points. |
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