10 Oct 2013
Session Recap: Aussie battered on soft Australian labour market
FXstreet.com (Barcelona) - A session of reckoning for the Australian Dollar, that would be a pretty accurate definition of how things unfolded for the Antipodean currency, which after a half-hearted attempt to break into higher ground, collapsed below the 0.94 handle on the realization that the Australian labour market remains quite soft.
On the downside, which eventually outweighed an improved jobless rate, was the total jobs created in September, which stood at +9,100 vs 15,000 exp and -10,800 last. Meanwhile, the decline in the unemployment rate to 5.6% at vs 5.8% forecast came with a subliminal message, that being despite a healthy fall in the rate of people seeking job opportunities, the participation rate stood at 64.9%, which represents the lowest since Nov 2006.
In Australia, another story to keep an eye on for the following months continues to be the booming property market, with such upward trend being reinforced today after NAB's Quarterly Australian Residential Property Survey for Q3 2013 saw housing market sentiment strengthened in Q3 as house price growth was observed in all states.
The Japanese Yen - inversely correlated to a surging Nikkei 225 today - and the New Zealand Dollar - NZ PMI disappointed - had also a very poor performance in what was a session dominated by the US Dollar in all fronts. The Euro traded soft vs the American Dollar too, with 1.35 being retested. ECB President Mario Draghi gave a speech at the 2013 Malcolm Wiener Lecture in International Political Economy, at Harvard Kennedy School, with no headlines related to monetary policy.
Since we have recently argued that Yellen's dovish-attached perception as Fed Chair had already being discounted by the market as soon as Summers dropped off the radar, and with talk of a short-term debt deal in the US intensifying, looks like the USD rally may have some logic.
Asian equities recorded some mixed results, with the Shanghai Composite, -0.12%. In Australia, the S&P/ASX 200 saw 0.20% in losses, while in Japan, the Nikkei 225 rose by almost 1% after encouraging manufacturing data.
Main headlines in Asia
The US short-term life-safer for a long-term crisis
AUD/USD selling trips 0.94 stops, trendline off 0.89 gone
It’s a win in Asian markets
Keep watching this developing trend in Australian housing market
Yellen is Fed's best forecaster, watch her predictions closely
Australian jobs soft, jobless rate down to 5.6%
Japan August Machinery Orders (MoM) rises to 5.4% vs 0%
New Zealand Business NZ PMI decreases to 54.3 in September from 57.5
Draghi headlines crossing the wires: no comments on monetary policy
On the downside, which eventually outweighed an improved jobless rate, was the total jobs created in September, which stood at +9,100 vs 15,000 exp and -10,800 last. Meanwhile, the decline in the unemployment rate to 5.6% at vs 5.8% forecast came with a subliminal message, that being despite a healthy fall in the rate of people seeking job opportunities, the participation rate stood at 64.9%, which represents the lowest since Nov 2006.
In Australia, another story to keep an eye on for the following months continues to be the booming property market, with such upward trend being reinforced today after NAB's Quarterly Australian Residential Property Survey for Q3 2013 saw housing market sentiment strengthened in Q3 as house price growth was observed in all states.
The Japanese Yen - inversely correlated to a surging Nikkei 225 today - and the New Zealand Dollar - NZ PMI disappointed - had also a very poor performance in what was a session dominated by the US Dollar in all fronts. The Euro traded soft vs the American Dollar too, with 1.35 being retested. ECB President Mario Draghi gave a speech at the 2013 Malcolm Wiener Lecture in International Political Economy, at Harvard Kennedy School, with no headlines related to monetary policy.
Since we have recently argued that Yellen's dovish-attached perception as Fed Chair had already being discounted by the market as soon as Summers dropped off the radar, and with talk of a short-term debt deal in the US intensifying, looks like the USD rally may have some logic.
Asian equities recorded some mixed results, with the Shanghai Composite, -0.12%. In Australia, the S&P/ASX 200 saw 0.20% in losses, while in Japan, the Nikkei 225 rose by almost 1% after encouraging manufacturing data.
Main headlines in Asia
The US short-term life-safer for a long-term crisis
AUD/USD selling trips 0.94 stops, trendline off 0.89 gone
It’s a win in Asian markets
Keep watching this developing trend in Australian housing market
Yellen is Fed's best forecaster, watch her predictions closely
Australian jobs soft, jobless rate down to 5.6%
Japan August Machinery Orders (MoM) rises to 5.4% vs 0%
New Zealand Business NZ PMI decreases to 54.3 in September from 57.5
Draghi headlines crossing the wires: no comments on monetary policy