Fundamental Headlines
• AUDUSD – The Australian economy continued to show signs of expansion as lending to consumers and businesses rose by the most in five months. Total credit rose 1.7% monthly beating the 1% estimates, led by miners trying to meet China’s demand for resources. These increased levels of borrowing are inspite of the RBA’s recent rate hikes signaling that the ecnomy will look to add to its current steak of 16 years of consecutive growth. The job growth fueled by the strong economy has led to wage inflation and overall inflationary concerns. Therefore, look for the RBA to continue it’s current streak of rate increases in 2008. Do you follow the Australian Dollar daily? Visit the Australian Dollar Currency Room for resources dedicated to the Australian Dollar.
• EURUSD – The Euro has gained on the US dollar in international official foreign exchange reserves. The Euro’s share rose to 26.4% for the third quarter of this year, the International Monetary Fund reported. This was up from 24.4% in the third quarter of 2006., the US dollar fell to 63.8% from 66.5% for the same period. Showing that the Euro is maturing into a significant rival of the Dollar. What do you think will happen to the EUR/USD? Join the discussion and voice your opinion on the DailyFX Forum.
• Treasuries Set for Yearly Gain; Reports May Show Slowing Growth (link) – Bloomberg
• U.S. Holiday Internet Sales Increase at Slowest Pace on Record (link) – Bloomberg
• China Focus May Stall Bush’s Trade Plans (link) – The Wall Street Journal
• Euro gains on dollar in official reserves (link) – Financial Times
• Pakistani Stocks, Rupee Tumble After Bhutto’s Assasination (link) – Bloomberg
• European Bonds Post Worst Year Versus Treasuries Since 1999 (link) – Bloomberg
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