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Adv GDP comes in at 3.5%!
By Mike Conlon | October 29, 2009
08:35 am : S&P futures vs fair value: +7.90. Nasdaq futures vs fair value: +11.50. Stock futures have spiked so that a much stronger start to the session appears to be in order. The improved tone comes in the wake of the latest dose of data. According to the advance third quarter GDP report, economic output increased at an annualized quarter-over-quarter rate of 3.5%, which is better than the 3.2% increase that was expected. That’s a sharp upturn from the 0.7% decline that was registered in the second quarter. Personal consumption during the third quarter was considerably strong. It came in with a 3.4% increase, which is better than the 3.1% increase that was widely expected and up from the 0.9% decline that was posted in the second quarter. Separately, initial jobless claims for the week ending October 24 came in at 530,000, which is a bit more than the 525,000 initial claims that economists had come to expect. The latest tally was essentially in-line with the previous week’s tally of 531,000. Meanwhile, continuing claims fell to 5.797 million from 5.945 million. (from yahoo finance)
So with the “fear” from this number abated, stocks up, US dollar (USD) and Japanese yen (JPY) down as risk-taking is back in play! Top gainers so far are Aussie (AUD) and Kiwi (NZD), as should be expected.
Take a look at the 5-min chart of AUD/USD (click chart to enlarge)
Having fun yet? Now up 60 pips in 20 minutes!
Now that the US economy appears to be recovering, with the first quarter over quarter growth in nearly a year, the carry trade is back on in full force as Australia is the place to be for yield seeking investors.
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