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Overview of the main economical events of the current day - 30/10/2013
Australian Dollar Fell After RBA Governor Stevens’ Speech
The US dollar grew on Tuesday Vs all major currencies amid 2-day FOMC meeting and bipolar US statistics. House prices rose more than expected but consumer confidence and retail sales in the USA decreased. Australian dollar dropped after RBA governor Glenn Stevens’ speech as he said that Australian dollar’s rate wasn’t supported by macroeconomic indicators.
On Tuesday 2-day FOMC meeting started and on Wednesday evening the central bank will announce monetary policy statement. In spite of the fact that the Fed is expected to keep its stimulus program unchanged the Fed can make a hint that it would start tapering this year in December already.
A positive moment was real estate price growth in American 20 largest cities - S&P/Case-Shiller Home Price Index grew by 12.8% in August at an annual rate in comparison with the expected growth by 12.5%. The indicator’s growth became the strongest since 2006. At the same time the US consumer confidence in October dropped to its low for half a year - CB Consumer Confidence fell to 71.2 p. against 80.2 p. in September while a decrease only to 75 p. was expected.
Retails sales fell by 0.1% in September while no changes were expected. However, the decrease occurred mainly due to auto sales fall by 2.2% - Retail Sales ex Autos rose by 0.4%, which met the expectations. September auto sales data could be distorted due to Labor Day celebration at the beginning of the month.
The euro rocketed after the speech of ECB member Nowotny but then slumped. Nowotny said that there were signs of euro-zone economic recovery and the ECB was unlikely to lower interest rates more. A negative deposit rate is unrealistic. And though the euro growth doesn’t make the central bank happy – it doesn’t require any correction from its side and, besides, the ECB doesn’t have funds to struggle with it. However, he added that the monetary policy should stay mild.
The pound also fell having ignored Mortgage Approvals growth in the UK up to the height since February, 2008. Mortgage Approvals rose to 66.7 thousand in September against 63.4 thousand in October while a growth only to 66 thousand was expected. The data indicate a further recovery at the housing market which is gathering pace. At the same time consumer lending data turned out worse than expected.
Australian dollar fell significantly on Tuesday having dropped to its low for more than two weeks against the US dollar after the speech of RBA governor Glenn Stevens who said that the Australian dollar wasn’t supported by macroeconomic indicators and probably would be considerably lower in future. This statement showed central bank’s concerns over the recent strengthening of Australian currency.
Canadian dollar continued falling. Raw Materials Price Index fell by 1.5% in September while its decrease only by 0.5% was expected. Besides, BoC governor Stephen Poloz in his speech on Tuesday again repeated his recent statement about the refusal of inclination to raise interest rates.
By MasterForex Company
Australian Dollar Fell After RBA Governor Stevens’ Speech
The US dollar grew on Tuesday Vs all major currencies amid 2-day FOMC meeting and bipolar US statistics. House prices rose more than expected but consumer confidence and retail sales in the USA decreased. Australian dollar dropped after RBA governor Glenn Stevens’ speech as he said that Australian dollar’s rate wasn’t supported by macroeconomic indicators.
On Tuesday 2-day FOMC meeting started and on Wednesday evening the central bank will announce monetary policy statement. In spite of the fact that the Fed is expected to keep its stimulus program unchanged the Fed can make a hint that it would start tapering this year in December already.
A positive moment was real estate price growth in American 20 largest cities - S&P/Case-Shiller Home Price Index grew by 12.8% in August at an annual rate in comparison with the expected growth by 12.5%. The indicator’s growth became the strongest since 2006. At the same time the US consumer confidence in October dropped to its low for half a year - CB Consumer Confidence fell to 71.2 p. against 80.2 p. in September while a decrease only to 75 p. was expected.
Retails sales fell by 0.1% in September while no changes were expected. However, the decrease occurred mainly due to auto sales fall by 2.2% - Retail Sales ex Autos rose by 0.4%, which met the expectations. September auto sales data could be distorted due to Labor Day celebration at the beginning of the month.
The euro rocketed after the speech of ECB member Nowotny but then slumped. Nowotny said that there were signs of euro-zone economic recovery and the ECB was unlikely to lower interest rates more. A negative deposit rate is unrealistic. And though the euro growth doesn’t make the central bank happy – it doesn’t require any correction from its side and, besides, the ECB doesn’t have funds to struggle with it. However, he added that the monetary policy should stay mild.
The pound also fell having ignored Mortgage Approvals growth in the UK up to the height since February, 2008. Mortgage Approvals rose to 66.7 thousand in September against 63.4 thousand in October while a growth only to 66 thousand was expected. The data indicate a further recovery at the housing market which is gathering pace. At the same time consumer lending data turned out worse than expected.
Australian dollar fell significantly on Tuesday having dropped to its low for more than two weeks against the US dollar after the speech of RBA governor Glenn Stevens who said that the Australian dollar wasn’t supported by macroeconomic indicators and probably would be considerably lower in future. This statement showed central bank’s concerns over the recent strengthening of Australian currency.
Canadian dollar continued falling. Raw Materials Price Index fell by 1.5% in September while its decrease only by 0.5% was expected. Besides, BoC governor Stephen Poloz in his speech on Tuesday again repeated his recent statement about the refusal of inclination to raise interest rates.
By MasterForex Company