AUD/USD Hits Lowest Level In Eight Months Over Signs Of Weaking Aussie

The release of data from building approval in Australia proved to be lower-than expected, and impacted the AUD. The AUD/USD pair plummeted to their lowest level in eight months. This was further compounded but the unemployment rates across the eurozone which hit records highs of 11.9 per cent and further compounded but the $85 billion budget cuts and the ensuing sequester.

Building approvals in Australia dropped by 2.4per cent in February, following a 1.7per cent drop in January. It caught investors unaware after lots of positive data had been seen in Australia recently. Investors had expected a rise of 2.8 percent. This indicated a weakening Australian economy.
Stocks

Asia
Asian trading saw a poor start to the week with stocks lower on the day. This came off the back of concerns that China will restart the tightening of their monetary policies to offset the price of increasing property.

Japan’s Nikkei gained 0.61 per cent at the same time as the USD/JPY dropped. The Yen saw its rise after the BOJ comment that the Monetary Base price had climbed to 15 per cent in February, from 10.9 per cent the previous month. Investors had anticipated a February rise of 11.5 per cent.

The Hong Kong Hang Seng dropped by 1.3 per cent and the Shanghai Composite down 2.86 per cent. At the close of the business Friday, Chinese stocks dropped dramatically after lawmakers mentioned that downpayments for new home buyers could be increased.

Australian ASX/S&P 200 dropped by 1.2 per cent on the back of building approvals.

Europe
Eurozone stocks were lower this morning in European open market trading over fears of the worsening situation across the zone, and the inability of the US parties to come to an agreement on spending cuts.

This morning the EURO STOCC 50 was down by 0.75 per cent, the French CAC 40 down 0.67 per cent and the German DAX 30 shrunk by 0.74 per cent.

Forex
The USD was higher against its major counterparts this morning amid concerns surrounding the US budget. The EUR/USD lost 0.20 per cent down to 1.2991. The USD held firm against the GBP with the pair losing 0.03per cent to 1.5030. the USD/JPY crept up 0.03 per cent to 93.56 and the USD against the Swiss Franc crept up by 0.05 per cent to 0.9431. The USD was up against the CAD, AUD and NZD this morning.

Commodities
Gold rebounded this morning. Gold for April delivery on Comex was up 0.64 per cent to $1582,40 a troy ounce. Crude oil was down a little in Asian session, oil prices for April delivery dropped 0.07 per cent to $90.61 a barrel.