Overnight the ‘Aussie’ hit another roadblock as domestic construction figures failed to reach forecasts, compounding concerns regarding ongoing weaknesses in the Australian economy.
The Australian Dollar extended losses against the ‘Buck’ and dipped against the Euro as the AiG performance of construction index came in at 50.8 in December.
The measure had dropped from 55.2 the previous month and is now dangerously close to the 50 mark dividing growth from contraction.
Although the report detailed upbeat residential construction, mining construction was down significantly.
In a statement accompanying the figures an AiG economist observed; ‘In line with the easing of the mining investment boom, engineering construction was weaker in December and, with further falls in store, the time is ripe for a much more decisive focus on building new and upgrading existing transport infrastructure.’
During European trading the ‘Aussie’s declines against the Euro were exacerbated as retail sales in the Eurozone were shown to have surged by considerably more than forecast in the November, jumping 1.4 per cent month-on-month rather than increasing by the 0.1 per cent expected.
Euro gains were a little tempered however by a smaller-than-expected rise in German exports and the news that the Eurozone’s unemployment rate held at 12.1 per cent while joblessness in nations like Italy climbed.
As well as softening against the Euro the ‘Aussie’ was languishing close to a five-year low against the New Zealand Dollar.
While the publication of the minutes from the latest Federal Open Market Committee movement may drive market movement overnight the Australian Dollar is also likely to be affected by domestic building approvals/retail sales figures and Chinese inflation data.
Of course the European Central Bank rate decision and confidence reports for the Eurozone will also be of considerable interest.
Euro (EUR) Exchange Rates
As of 10:35 GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3604 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8285 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5257 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6435 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4713 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7352 >
The Pound/Euro Exchange Rate is currently in the region of: 1.2067 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6550 <
