There were no data releases from Australia yesterday. The AUD is supported by a jump in iron ore prices as well as weakness in the US dollar which is up in the Asian session but down on the week. The iron ore price is continuing to defy dire forecasts in the lead-up to Christmas, with the rally extending to seven sessions. An 8 per cent recovery over the past week has seen the commodity rise above $40 a tonne for the first time since December 5, though it remains more than 40 per cent down on the year.
In the US session
Durable Goods Orders, New Home Sales and Consumer Sentiment figures were released. Businesses remain skittish about making big investments: Orders for durable or long-lasting U.S.-made goods such as computers and heavy machinery softened again in November.
Orders for durable goods were flat last month following a 2.9% increase in October, the Commerce Department said Wednesday. Analysts were anticipating 0.6% decrease. And they would have fallen a sharp 1.5% if not for an large increase in orders from the Pentagon. In some industrial segments demand was robust.
New Home Sales showed a seasonally adjusted annual rate of 490,000, the Commerce Department said Wednesday. Analysts were anticipating rate of 507,000. That was the highest in three months. November’s tally was up 4.3% from a revised 470,000 rate in October. Sales were 9.1% higher compared to a year ago. Separate report showed that confidence ended the year on a brighter note as low prices put U.S. consumers in the holiday spirit. The University of Michigan said Wednesday that its final sentiment index for the month climbed to 92.6, the highest since July, from 91.3 in November. The median projection of economists called for a reading of 92 after December’s preliminary figure of 91.8.
Thursday's session should be a steadier one, with no major data releases from Australia and with Christmas Eve on the way we cannot expect any larger movements. In the US session Unemployment Claims figures are scheduled for a release. Analysts are predicting slight decrease to 270,000.
Figures to watch:
Unemployment Claims (Thursday 14:30)
