- Australian building approvals up by 7.5% in Nov
- Nikkei up by 1.67% for the day on improved risk appetite
- BOE interest rate decision coming up
Is risk appetite back on? Commodity currencies advanced against the U.S. dollar and the Japanese yen in the past few hours, as forex traders reacted to the latest set of reports. Asian equities also reflected this demand for higher-yielders, as the Nikkei logged in a 1.67% gain for the day.
In Australia, building approvals showed an impressive 7.5% jump in November instead of the estimated 2.7% drop. AUD/USD is up 0.4% a few pips above the .8100 major psychological resistance and AUD/JPY is up 0.87% just a bit past 97.00. The New Zealand dollar also benefitted from this improvement in sentiment, with NZD/USD looking at a 0.26% gain and edging close to the .7800 handle.
The forex calendar shows that the British pound might take center stage in the next few hours since the BOE is set to make its interest rate statement. No actual policy changes are expected, but Governor Carney and his men are expected to make a few more cautious remarks in today’s event scheduled at 1:00 pm GMT.
As for the euro, only a few medium-tier reports are lined up, namely the euro zone retail sales data and the German factory orders figure. Stronger than expected data could provide support for the shared currency, although updates on the Greek political situation continue to add selling pressure.
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