A pretty busy session for the forex bulls and bears, as they priced in several data releases and a not-so-fruitful EU Summit.
- Japan’s trade deficit widens from 0.19T JPY to 0.24T JPY in September
- Australia adds net 5,600 jobs in September vs. 15,200 expected, 44,600 in August
- Australia’s unemployment rate down from 5.3% to 5.0% in September
- Australia NAB quarterly business confidence dips from 7 to 3 in Q3 2018
Australia’s jobs report
Data from the Land Down Under showed the economy adding a net of 5,600 jobs in September. For reference, analysts had expected a net addition of 15,200 after seeing a 44,600 surge in August.
A closer look tells us that full-time employment increased by 20,400 while part-time jobs saw a net decrease of 14,700 for the month.
For newbies out there, know that market players and the RBA prefer full-time jobs over part-time ones as they point to improved consumer confidence and spending.
Meanwhile, the jobless rate plunged from 5.3% to 5.0% That’s the lowest since April 2012, yo!
The labor force participation rate dipping from 65.7 to 65.4 was the only dark cloud in the sky, as it hinted that part of the improvement in the unemployment rate came from job-seekers giving up their search rather than all of them finding employment.
Low-key risk aversion
The Asian bourses went the way of their U.S. counterparts, as a hawkish Fed meeting minutes, global trade war concerns, lack of (significant) progress in the EU Summit, and in Nikkei’s case a weak trade report weighed on high-yielding bets.
- Nikkei is down by 0.57% to 22,711.8
- A SX 200 is up by 0.20% to 5,919.4
- Shanghai index is down by 1.99% to 2,510.618
- Hang Seng is down by 0.15% to 25,424.3
Commodity prices also reflected the overall risk-aversion theme. The safe-haven gold gained some ground, while crude oil benchmarks extended their declines from the previous session.
- Gold is up by 0.12% to $1,223.61 per troy ounce
- Brent crude oil is down by 0.22% to $80.10 per barrel
- U.S. WTI is down by 0.34% to $69.78 per barrel
Major Market Mover(s):
Australia’s jobs data falling to its six-year lows attracted a lot of bulls to the Aussie’s yard.
AUD/USD is up by 23 pips (+0.32%) to .7132; AUD/JPY is up by 18 pips (+0.22%) to 80.26; AUD/NZD is up by 34 pips (+0.31%) to 1.0886; AUD/CHF is up by 19 pips (+0.27%) to .7094; EUR/AUD is down by 54 pips (-0.34%) to 1.6122, and GBP/AUD is down by 79 pips (-0.43%) to 1.8367.
There were no direct catalysts for the Loonie’s decline, but its positive correlation with oil prices might have dragged the comdoll lower today.
USD/CAD is up by 19 pips (+0.15%) to 1.3038; CAD/JPY is down by 18 pips (-0.21%) to 86.32; AUD/CAD is up by 42 pips (+0.45%) to .9298; EUR/CAD is up by 17 pips (+0.11%) to 1.4990, and CAD/CHF is down by 12 pips (-0.16%) to .7630.
An extension of Britain’s exit schedule means more uncertainty, so the pound bears found it easy to dominate the charts.
GBP/USD is down by 14 pips (-0.11%) to 1.3099; EUR/GBP is up by 10 pips (+0.11%) to .8778; GBP/CHF is down by 21 pips (-0.16%) to 1.3031; GBP/NZD is down by 24 pips (-0.12%) to 1.9995, and GBP/JPY is down by 32 pips (-0.21%) to 147.41.
The low-yielding yen gained across the board despite a weak exports report from Japan.
USD/JPY is down by 11 pips (-0.10%) to 112.53; EUR/JPY is down by 16 pips (-0.12%) to 128.39; NZD/JPY is down by 5 pips (-0.06%) to 73.72, and CHF/JPY is down by 6 pips (-0.05%) to 113.12.
Watch Out For:
- Day 2 of EU Summit starts today. Read what you can expect from the event!
- 6:00 am GMT: Switzerland’s trade balance (2.45B CHF expected, 2.13B CHF previous)
- 6:00 am GMT: Germany’s wholesale price index (0.4% expected, 0.3% previous)
- 8:30 am GMT: U.K.’s retail sales report. Read our mini trading guide to see what market geeks are expecting!