By CountingPips.com
U.S. Pending Homes sales rose more than expected in the month of February, according to the monthly report released by the National Association of Realtors (NAR) today. The NAR report showed that pending home sales contracts signed by buyers grew by 8.2 percent in February following January’s 7.8 percent revised decrease. On an annual basis, 
pending home sales were 17.3 percent above the February 2009 sales level.
The February’s sales increase was better than the market forecasts that were expecting no change or a flat reading for the month.
NAR chief economist Lawrence Yun commented on pending home sales level saying, “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” he said. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”
Pending home sales in the Northeast increased by 9.0 percent in February while the Midwest saw a surge of 21.8 percent. Sales in the South rose by 9.2 percent while sales in the West decreased by 4.8 percent for the month.
On an annual basis, all four areas were above the February 2009 sales level with the Northeast showing an annual gain of 18.9 percent, the Midwest showing a 18.7 percent annual rise, the South showing a 17.5 percent increase and the West showing a 14.5 percent annual advancement.
U.S. ISM Non-manufacturing Business expands
U.S. non-manufacturing business activity rose for the third straight month in March, according to a report released today by the Institute for Supply Management. The Non-manufacturing Index (NMI) registered a score of 55.4 percent in March from a score of 53.0 percent in February. The data surpassed market forecasts which were expecting an index score of a 54.0 percent.
The NMI equally weights the index scores of business activity, new orders, supplier deliveries and employment and an index score below 50 is considered contracting or declining while a score above 50 is considered growth or expansion. Contributing positively to the report were increases in new orders, prices and employment.
FOREX: US Dollar mixed in trading
The US Dollar has been mixed in forex trading today against most of the major currencies on a day when many European markets are still closed for an extended Easter holiday. The dollar has been gaining ground versus the euro, Swiss franc and New Zealand dollar today while falling against the Japanese yen, British pound and the Canadian dollar.
Against the Australian dollar, the USD has been virtually unchanged around the day’s opening exchange rate, according to according currency data by Oanda before noon in the U.S. trading session.
The US stock markets, meanwhile, are having a winning session today with the Dow Jones gaining by approximately 40 points, the Nasdaq increasing approximately 20 points and the S&P 500 up by over 6 points at time of writing. Oil has traded higher to $86.78 while gold has gained $3.90 to level at $1,129.00 per ounce.
Tomorrow’s Economic News
The biggest economic news on tomorrow’s schedule is the interest rate decision by the Reserve Bank of Australia . Many forecasters are expecting the RBA to increase the rate by 25 basis points to 4.25 percent which could give a boost to the Australian dollar. Also to be released is the Swiss consumer price index, the Euro-Zone Sentix Investor Confidence as well as the Federal Open Market Committee Meeting Minutes.
