The greenback continued its retreat overnight as global equity markets followed on from the strong performance in the local session, supported by a surge in key commodities. European markets kicked off without hesitation running with the positive lead given in the local session, adding further pressure to the ailing greenback.
Economic data in the Euro-Zone overnight saw the Purchasing Managers Index (PMI) for the Manufacturing sector rise to a level of 51 in November against a reading of 50.7 in October. The PMI for the services sector also saw growth rising to 53.2, against a previous reading of 52.6. Despite a reading of '50' or greater indicating economic expansion, economist have interpreted the latest result as a possible near term peak in growth, indicating a slow a protracted recovery into 2010. This did little to mute the latest burst of optimism with strong performances from European equity markets across the board. The Euro also surged but failed to maintain momentum after hitting highs of US$1.5000, before retreating slight to current levels of US$1.4960.
The script was already written for US equity markets, and continued to surge on the back of better than expected housing data. US Existing Home Sales outstripped expectations growing 10.1 percent for the month of October against the consensus for a rise of 2.3 percent. Across the border we also saw bullish signs for the Canadian economy with Retail Sales rising 1 percent for the month of September, in addition to upwardly revised figures for August of 1 percent. This of course translated to further greenback losses.
The US dollar index which measures the dollar's value relative to six major foreign currencies is currently valued at 75.14 representing a loss of 0.64 percent. In typical fashion, Gold movements diverged from the falling dollar, hitting highs of US$1,174.00 an ounce. The Aussie dollar followed suit peaking at .9278 US-Cents overnight, as of 09:45 AEDT the Aussie has retreated slightly but remains stead fast around .9240 US-Cents.