- Australia added 38.5K jobs in July vs. 10.2K forecast, 7K previous
- Australian unemployment rate climbed from 6.1% to 6.3% in July
- BOE rate statement, Inflation Report hearings, MPC minutes due
One would think that upbeat figures from Australia could allow the Aussie to advance against its forex rivals, but it looks like buyers are hesitating. AUD/USD is down 25 pips (-0.34%), AUD/JPY is lower by 37 pips (-0.41%), and AUD/NZD is down 85 pips (-0.75%). The Aussie even chalked up losses to its European counterparts, with GBP/AUD up by 116 pips (+0.55%) and EUR/AUD up by 65 pips (+0.44%).
The Australian economy printed another stronger-than-expected report, as the jobs release indicated that 38.5K jobs were added in July versus expectations of a 10.2K gain. This was also better than the previous report, which indicated a 7K increase, slightly downgraded from the initially reported 7.3K figure. While the jobless rate ticked a couple of notches up from 6.1% to 6.3%, components of the report revealed that the seasonally-adjusted participation rate improved to 65.1%.
Sterling is set to steal the forex show in the upcoming London trading session, as the BOE policy statement, MPC minutes, and Inflation Report hearings are all lined up. Oh, did I mention that BOE Governor Carney also has a testimony due? The Super Thursday fun starts at 12:00 pm GMT, with most market participants banking on hawkish remarks from central bank officials. Recall that Carney hinted that they are moving closer to tightening monetary policy, which had some analysts foreseeing two or three MPC members voting to hike interest rates this time.
Before all that, traders could still take some cues from medium-tier reports from the euro zone and Switzerland. German factory orders are up for release and it might show a 0.4% rebound in June, up from the previous 0.2% decline. Meanwhile, the Swiss SECO consumer climate reading is due and a drop from -6 to -7 is eyed. Weaker than expected results could mean another round of losses for the euro and the franc while strong data could spur short-term gains.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
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