Talks of the U.S. renewing its trade talks with China boosted the Asian bourses today, while a positive report from Australia pushed the Aussie higher.
- NZ food price index slips by 0.5% vs. 0.7% increase in July
- U.K. RICS house price balance dips to 2% as expected
- Japan’s core machinery orders up by 11.0% vs. 5.6% expected, 8.8% fall in June
- Japan’s PPI remains at 3.0% vs. 3.1% expected
- Australia’s MI inflation expectations retains 4.0% reading
- Australia maintains 5.3% unemployment rate in August
- Australia adds net of 44,00 jobs vs. 16,500 expected, -4,300 in July
Australia’s jobs data
A report from the Land Down Under showed the economy adding a net of 44,000 jobs for the month of August. That’s not only better than July’s 4,300 cut, but it also surpassed analysts’ estimates of a 15,000 increase!
The jobless rate was also cause for celebration. It matched last month’s 5.3% reading, which remains the lowest since November 2012.
A closer look tells us that a net of part-time employment inched 10,300 higher, while a net of 33,700 workers had found full-time jobs for the month.
The cherry on top of the sweet sundae is the labor force participation rate rising by 0.2% to 65.7% when market geeks had only expected a 65.6% reading.
Remember that full-time employment means steadier jobs and more confidence to spend. Overall, today’s numbers would help alleviate the Reserve Bank of Australia (RBA)’s concerns over high borrowing possibly weighing on consumer spending.
Mixed price action
Asian session traders took cues from their U.S. session counterparts and extended the celebration over the U.S. extending an invite to Chinese reps for another round of trade negotiations this month.
- Nikkei is up by 0.95% to 22,820.4
- A SX 200 is down by 0.29% to 6,146.8
- Shanghai index is up by 0.14% to 2,658.809
- Hang Seng is up by 1.46% to 26,729.4
The risk-friendly trading environment failed to boost commodities, however, as gold took hits on some dollar strength while crude oil prices took hits on OPEC downgrading its 2019 global demand forecasts for a second consecutive month yesterday.
- Gold is down by 0.01% to $1,205.92 per troy ounce
- Brent crude oil is down by 0.54% to $69.88 per barrel
- U.S. WTI is down by 0.50% to $79.28 per barrel
Major Market Mover(s):
The Aussie got a double boost from overall market risk appetite and Australia printing a much better-than-expected labor market report.
AUD/USD is up by 24 pips (0.34%) to .7194; AUD/JPY is up by 39 pips (+0.48%) to 80.15; AUD/NZD is up by 41 pips (+0.37%) to 1.0968; EUR/AUD is down by 34 pips (-0.21%) to 1.6177, and GBP/AUD is down by 49 pips (-0.27%) to 1.8141.
Traders shrugged off a better-than-expected machinery orders report from Japan and instead priced in a risk-friendly trading environment across the yen crosses.
USD/JPY is up by 16 pips (+0.14%) to 111.41; EUR/JPY is up by 33 pips (+0.25%) to 129.67; GBP/JPY is up by 28 pips (+0.19%) to 145.41, and CHF/JPY is up by 38 pips (+0.33%) to 114.96.
Despite the market players’ risk appetite, the low-yielding franc ended up making pips against its major counterparts. There are no direct explanations for the move, though some traders might be taking profits ahead of the top-tier releases during the London session.
USD/CHF is down by 13 pips (-0.13%) .9692; GBP/CHF is down by 11 pips (-0.08%) to 1.2649; EUR/CHF is down by 3 pips (-0.02%) to 1.1279; NZD/CHF is down by 10 pips (-0.16%) to .6357, and CAD/CHF is down by 12 pips (-0.13%) to .7455.
Watch Out For:
- 6:00 am GMT: Germany’s final CPI expected to remain at 0.1%
- 6:45 am GMT: No changes expected from France’s 0.5% final CPI
- 7:15 am GMT: Switzerland’s PPI (0.0% expected, 0.1% previous)
- 11:00 am GMT: BOE’s monetary policy announcement. Read our mini trading guide!
- 11:45 am GMT: ECB’s monetary policy decision. What can you expect from the event?