Aussie Dollar Nosedives As Buyers Fail Once Again
Aussie dollar was one of the biggest losers of the past session as it moved lower against the US dollar and traded towards the 0.8130 support area.
AUDUSD was down more than 100 pips and look unstoppable at the moment.
South African Manufacturing Production released by the Statistics South Africa declined by 2.1% in November 2014, compared with the preceding month.
Indian Cumulative Industrial Output released by Ministry of Statistics and Programme Implementation increased by 2.2% in November 2014, compared with the last gain of 1.9%.
Indian Industrial Output increased by 3.8% in November 2014, compared with the decrease of 4.2%.
Indian Manufacturing Output was also released which increased by 3% in November 2014, compared with the decrease of 7.6%.
EURUSD also fell a bit lower during the London session, but was supported around 1.1800
GBPUSD continued to perform better compared to the EURUSD pair which is a positive sign.
US Labor Market Conditions Index
Earlier during the NY session, the US labor market conditions index (LMCI) was released. The outcome on the higher side as the index increased from 2.9 to 6.1. The labor market conditions index is a primary source of common variation among 19 labor market indicators. The US dollar buyers were not impressed by the outcome, as the US dollar was seen trading lower after the release. The EURUSD and the GBPUSD pair managed to gain bids and recover the ground. The EURUSD pair bounced and traded back above the 1.1820 resistance area and looks set for more gains in the near term.
London Session Recap
There was no economic release in the Euro area and the UK today, which kept the market quiet during the London session. However, the Aussie dollar collapsed against the US dollar. It is important to note to that there was no major impact on the AUDUSD pair during the Asian session despite bad Australian home sales report. However, it looks like that the AUDUSD pair sellers realized it later as the pair traded more than 100 pips lower during the last few hours.
The Australian Home Loans report was released by the Australian Bureau of Statistics earlier today. The market was expecting it to increase by 2% in November 2014, compared with a month earlier. However, the result was not that good, as Australian Home Loans declined by 0.7%. Furthermore, the total value of dwelling finance commitments excluding alterations and additions decreased by 1.0%. This might be one of the reasons for the Aussie dollar moving lower.
Technically, the AUDUSD pair traded toward the 0.8130-20 support area where it just managed to hold the downside. The main reason was finding support around that area is the fact that the 100 hour moving average was sitting around the same area. One more critical point to note was that the 200 hour moving average is also positioned around the same area. So, one might say that 0.8120 is a monster support for the pair.
UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
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