A stronger-than-expected labor market report boosted the Aussie across the board. Meanwhile the euro tracked the pound’s gains and was pushed higher over this week’s Brexit developments.
- Australia’s MI inflation expectations prints at 3.6% vs. 4.0% growth in September
- Australia adds net of 32.8K jobs vs. 19.9K expected, 7.8K previous
- Australia’s unemployment rate remains at 5.0% vs. increase to 5.1% expected
Australia’s labor market reports
Data from the Land Down Under showed the economy adding a net of 32,800 jobs in October, which is much stronger than the 19,900 addition that analysts had expected, and the 7,800 jobs added in September.
The unemployment rate was also cause to celebrate, as it remained at 5.0% when markets were braced for it to inch higher to 5.1%.
What made the 5.0% mark even better was the fact that labor force participation rate improved from 65.5% to 65.6% and suggested that the increase of workers looking for jobs did not affect the overall jobless rate.
The cherry on top of today’s sweet release was monthly hours worked increasing by another 0.3% in October.
China sends handwritten letter to U.S.
There were no other interesting tidbits from the report, but the idea that the U.S. and China are still talking trade was enough to attract some market bulls.
Mixed market sentiment
Thanks to a report that China continues to engage the U.S. in trade negotiations saved the Chinese markets from tracking their U.S. counterparts.
Nikkei failed to join in on the bullish move, however, thanks to a couple of major Japanese banks failing to upgrade their forecasts in their earnings reports as others had expected.
- Nikkei is down by 0.66% to 21,701.5
- A SX 200 is down by 0.96% to 5,697.0
- Shanghai index is up by 0.69% to 2,650.513
- Hang Seng is up by 0.42% to 25,760.9
Commodity prices were also mixed, with gold finding support from a pullback in dollar prices while jitters over oversupply and slowdown in global demand kept a lid on crude oil’s gains.
- Gold is up by 0.01% to $1,210.76 per troy ounce
- Brent crude oil is up by 0.02% to $65.86 per barrel
- U.S. WTI is down by 0.04% to $55.96 per barrel
Major Market Mover(s):
Not surprisingly, the strong labor market data from Australia boosted the Aussie across the board.
AUD/USD is up by 40 pips (+0.55%) to .7271; AUD/JPY is up by 34 pips (+0.42%) to 82.49; AUD/NZD is up by 65 pips (+0.61%) to 1.0703; AUD/CHF is up by 38 pips (+0.42%) to .7313; EUR/AUD is down by 43 pips (-0.27%) to 1.5581, and GBP/AUD is down by 59 pips (-0.33%) to 1.7884.
The common currency finally tracked the pound’s recent gains after British PM Therese May’s latest Brexit plan secured the backing of her cabinet members. Hey, the U.K.’s not the only party in this divorce, ya know.
EUR/USD is up by 23 pips (+0.20%) to 1.1330; EUR/JPY is up by 6 pip (+0.05%) to 128.54; EUR/GBP is up by 8 pips (+0.09%) to .8712; EUR/CHF is up by 21 pips (+0.18%) to 1.1396, and EUR/CAD is up by 23 pips (+0.15%) to 1.4992.
There were no direct catalysts to support the yen’s strength, though the dollar’s weakness that dragged USD/JPY lower could have affected other yen crosses as well.
USD/JPY is down by 16 pips (-0.14%) to 113.45; CHF/JPY is down by 11 pips (-0.10%) to 112.79; NZD/JPY is down by 8 pips (-0.10%) to 77.06, and CAD/JPY is down by 5 pips (-0.05%) to 85.73.
Watch Out For:
- 9:30 am GMT: U.K.’s retail sales report (0.2% expected, -0.8% previous). Here’s what you can expect.
- 10:00 am GMT: Euro Zone trade balance (16.4B EUR expected, 16.6B EUR previous)