Aussie falls after Australian jobs data; pound steady ahead of BOE
XM Group | Sep 15, 2016 01:49AM ET
The Australian employment report was the main data in focus during Thursday’s Asian session. It was a mixed report showing that the economy lost 3,900 jobs in August, compared with a revised gain of 25,300 in July (previously 26,200). The figure was contrary to economists’ expectations for a gain of 15,000 jobs.
The Aussie initially dropped after the data to touch a session low of $0.7445 before steadying to $0.7468 as investors were satisfied by the fact that the unemployment rate fell to 5.6%, marking the lowest unemployment rate since July 2013. Economists expected the rate to remain steady at 5.7%.
In other news in Asia, the New Zealand dollar was hit hard after disappointing quarterly GDP data that fell short of economists’ expectations for 1.1% growth. The data showed the New Zealand economy grew at a seasonally-adjusted 0.9% quarter-on-quarter in Q2. This was flat from Q1 which was revised to 0.9% q/q. The kiwi dropped to $0.7257 after the news from a session high of $0.7300.
In other currencies, there has been profit-taking and waiting on the sidelines ahead of key data due out later today. The dollar rebounded against the yen to 102.42 yen after touching a session low of 101.93 yen. The euro was steady around $1.1240, while sterling consolidated gains around $1.3250 after bouncing off two-week lows of $1.3137. The main risk event for the pound will be the Bank of England policy decision later today. The BoE is not expected to change policy at this meeting after having cut interest rates to record lows last month. UK retail sales data will also be in focus today.
Eurozone final inflation figures are due in the European session before a busy US session that includes data on jobless claims, retail sales and the Philly Fed manufacturing index, all out of the US.
In commodities, oil prices dropped almost 3% to $43.42 a barrel despite a report yesterday showing a surprise drop in crude oil inventories. WTI oil prices initially jumped to $45.10 after the EIA report showed a draw of 0.6 million barrels of crude oil versus the projected gain of 2.8 million barrels. There is still an ongoing concern of a global oil supply glut after the International Energy Agency revised its outlook for supply earlier this week and said it expects a glut persisting into 2017.
Gold traded a small range just above $1,321 an ounce in Asian trading.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.