Dollar Spikes Up As US GDP Growth Revised Up In Q3
Canbera-Australia (Nov 25) The US dollar advanced against its major rivals on Tuesday, trimming early losses, after data showed that US economy grew more than predicted earlier in the third quarter.
According to a report released by the Commerce Department, gross domestic product increased by 3.9% in the third quarter compared to the previously reported 3.5% increase.
The upward revision came as a surprise to economists, who had expected the pace of GDP growth to be downwardly revised to 3.3%.
The greenback rose to 1.2401 against the euro and 0.9697 against the franc, reversing from early lows of 1.2443 and 0.9662, respectively. The next possible resistance for the greenback may be located around 1.23 against the euro and 0.975 against the franc.
The greenback rose back against the Sterling, trading at 1.5666. On the upside, the greenback may find resistance around the 1.55 mark.
UK mortgage approvals declined to the lowest level since May 2013 , a report from the British Bankers' Association showed.
The number of mortgage approvals fell to 37,076 in October from 39,127 in September. It was forecast to fall to 38,500.
The greenback briefly pared its early losses against the yen with pair trading at 118.28. The greenback is heading to pierce its early 5-day high of 118.57. Continuation of the greenback's uptrend may see it challenging resistance around the 120.00 zone.
Japan's government maintained its economic assessment but cautioned about private spending, a monthly report released from Japan's Cabinet Office showed.
The Japanese economy is on a moderate recovery, it noted. The government downgraded its view over the last two consecutive months.
The greenback continued its early rise, approaching a 2-week high of 0.7765 against the kiwi and more than a 4-year high of 0.8513 versus the aussie. Next key resistance for the greenback is seen around 0.84 against the aussie and 0.77 against the kiwi.
Looking ahead, S&P/Case-Shiller home price index and FHFA's house price index for September and consumer confidence index for November are due shortly.