While the Federal Reserve released a report on Friday showing a continued increase in U.S. consumer credit in the month of February, the increase in credit fell short of economist estimates.
The report showed that consumer credit increased by $8.7 billion in February following a revised increase of $18.6 billion in January. Economists had expected credit to increase by about $12.0 billion compared to the $17.8 billion increase originally reported for the previous month.
The smaller than expected increase in consumer credit came as a drop in revolving credit partly offset an increase in non-revolving credit.
Non-revolving credit such as student loans and car loans rose by $11 billion, while revolving credit, which largely reflects credit card debt, fell by $2.2 billion.
The Fed said consumer credit increased at an annual rate of 4.2 percent in February, as a 7.7 percent increase in non-revolving credit more than offset a 3.3 percent drop in revolving credit.The material has been provided by Instaforex Company - instaforex.com
U.S. Consumer Credit Rose By $8.7 Billion In FebruaryThe material has been provided by Instaforex Company - instaforex.com
The AUD / USD pair has consolidated above 1.0223 Fractal tghough the reversal of a trend is still not obvious. The aussie is still under the negative pressure due to the results of the meeting of the Reserve Bank of Australia that Caused Many worries of investors.
On a technical level we recommend Buy-deals over the daily fractal with objectives to the downtrend channel. In case of another breakdown we recommend to buy the final target seen at the level 1.0670
The MACD indicator is in oversold area and it is possible to bounce the upward trend.The material has been provided by Instaforex Company - instaforex.com
Friday was a special day in terms of releases of most important data of the month concerning the non-farm payrolls in the U.S., coinciding with Good Friday, which remains close to all major financial centers worldwide.
If we go back to April 2010 analyzing the data of March, we will see that the current situation is the same. This time employment grew only slightly remaining below expectations though this recovery is considered as stable considering the situation of the last two months. Also it coincided with the first positive figure for job creation since January 2008. If you look at the charts of the following months, this can be considered as one of the worst records during the periods of job losses in recent decades.
This time the situation is different. The U.S. economy is clearly on recovery and even Tim Geithner Treasury Secretary and one of the officials that always support skeptical views of Fed Chairman Ben Bernanke, said on Tuesday that now there is reason to be optimistic.
In March 207,000 jobs were expected to be created, revised from 227,000 in February. A figure, of course, is subject to revision. Also, it is expected that the unemployment rate remains at 8.3%, similar to the previous month though still very high.
The release of breaking news that is expected to create jobs is coming in several minutes though it is not considered as able to affect the situation significantly. But I have to pay much attention to the beginning of the Asian session on Monday, when prices start to settle. The "gaps" logon will be the order of the day providing favorable business opportunities.
Prices, of course, just move. On Thursday the euro continued experiencing multi-days low and touched 1.3030 – a significant support level, while the British pound is still moving within a major uptrend on the daily chart and can fail to break the level 1.5780 .
Meanwhile, an excellent Canadian employment report has boosted the loonie to begin a new bullish trend just before it could lose its gains against the dollar.
The Australian dollar continued to fall and just regaining their positions in these hours trading above 1.03. The main tendency remains bearish as we can see on daily charts. As to the yen that moves within a narrow price range, it does not provide signals at its junction with the dollar in the short term prospective. Nevertheless, the analysis of daily charts allows considering a new growth of the JPY in the coming days.The material has been provided by Instaforex Company - instaforex.com