Pending sales of existing homes in the world’s largest economy declined in the month of September, bucking analysts’ estimates.  The surprise drop of 4.6% beat out forecasts for a 0.4% gain, as well as falling below the 1.2% decline in August’s release, according to the National Association of Realtors today.

Coupled with consumer sentiment that is still in the dumps and employment concerns rampant, today’s data continues to indicate a relatively depressed housing market in the US.  Incidentally, today’s report contrasts with a prior new home sales report that showed a 5.7% surge in sales to an annualized pace of 313,000 homes.  But, the figure still remains below the 323,000 home pace witnessed last year.

Nonetheless, the surprise drop in home sales is being overshadowed by better than expected gross domestic product figures released by the US Commerce Department this morning.  Third quarter expansion was higher by 2.5%, compared to slower second quarter expansion of 1.3%.

EURUSD and AUDUSD are two currency pair benefiting immensely from the report – with both major currencies trading up over 2% on the day.  Australian dollar gains are higher by 3.33% on the session.