Monday has been a relatively unremarkable day on the markets with the US and the UK both closed for holidays. Markets struggled to find direction and volatility was present.
Overnight data from Australia showed that Building approvals managed to turn a previous -10.3% decline into a +4.4% for the month of April. The previous decline was mostly related to weather conditions. Overall the Aussie survived well the prospect of a slowdown in construction of residential homes and despite losing some ground against the USD and the JPY this morning, it is balanced off with similar gains against the Euro and the GBP for example.
US Dollar recovery continued even this morning with the USD now entering a fourt consecutive day of gains after the 6 ½ month lows seen last week.
EURUSD heads south as the USD recovers and political uncertainity foils Italy. Renzi’s comments over the weekend seemed to suggest snap elections could be an option.
