Commodity currencies tumbled overnight as China unexpectedly increased the amount of deposit reserves required by banks, in an effort to reduce the risk of inflation and the likelihood of an asset bubble developing. The central bank announced requirements will increase by 50 basis points from the existing level of 15.5 per cent starting on January 18. This saw the Aussie take a hit overnight falling to lows of 91.7 US cents, following on from yesterdays less than convincing housing data. The latest Aussie dollar winning streak came to a halt yesterday as Home Loan approvals for the month of November fell a seasonally adjusted 5.6 per cent, against expectations of a fall of 2.3 per cent. At the time of writing the local unit is buying 92.1 US cents - in the absence of economic data, we expect movements to be governed by movements in local equity markets.