True to form, the better than expected US GDP resulted in a risk orientated dollar sell off overnight. News that US Gross Domestic Product rose by an annualised rate of 3.5 percent sent equity and commodity markets higher, snapping the greenback's recent winning streak. Economist had expected an annualised growth of 3.2 percent. Initial Jobless claims come in a fraction higher than consensus registering 530,000 new claims in the week ending October 24th, however still recording a declined from the previous weeks 531,000 claims. Continuing claims which show the number of people claiming ongoing employment benefits declined.
We also saw more evidence that the economic recovery in Europe is gathering pace with Economic and Consumer Confidence figures showing more signs of Improvement. The Euro-Zone Economic Confidence survey for October came in at 86.6 representing a 13 month high. Economist had expected a rise to 84.4, whilst Consumer confidence data registered -18 compared to the previous months -19. The Euro is currently buying US$1.4840 representing an increase of 1.2 US-Cents in the last 24 hours.
The better than expected US GDP buoyed commodities with Crude oil rising to highs of US$80.46 overnight, and Gold finding its feet after falling to lows of US$1,026.60 an ounce in yesterday's trade. At the time of writing Gold is trading at US$1047 an ounce. By default the Aussie dollar resumed momentum overnight rising to highs of US$.9182 after being derailed on the back of greenback strength yesterday, which saw the Aussie trade to lows of US$8942. We expect optimism to continue to resonate through Global markets today as investors come to terms with the technical end of the US recession.