US Tech Stock Crash Erases Positive Jobs Data Gains

AUD

AUD opens down against most of the majors. Asian equities closed Thursday higher, the Shenzhen +1.2%, the Hang Seng +0.6% and the Nikkei +0.4%. the ASX also shed -0.5%. A mixed bag for Commodities with no large moment apart from Newcastle Coal up 1.5% and Natural Gas down -1.5%. Yesterday we saw some movement in the AUD through strong employment data, 42.2k jobs added to the Australian economy (forecasted at 20k) and movement in the unemployment rate down from 4.5% to 4.3%. Overnight we had Chinese M2 Money Supply y/y released at 8.2% down from previous 8.4%. Today there is no data for the Aussie but will see Industrial Production y/y, Retail Sales y/y and Unemployment Rate out from China.

USD

AUDUSD opens very slightly down at 0.6529 after hitting highs of 0.6580 overnight. Wall St equities shed across the board as markets await a timeline of expected economic data releases, following an end to the US Government shutdown. The Dow Jones trading -1.4%, the S&P 500 -1.6%, and the Nasdaq -2.5%. With the US government now open, attention turned to the release of US economic data with White House officials saying that September payrolls would be released as early as next week though there would be no unemployment rate. The data could influence Federal Reserve policy, though the future of interest rate decisions for now remains uncertain. A number of FOMC members spoke over night with main points surrounding the high-level of inflation and the lack of US data releases, with uncertainty around when the data will be released leaving markets guessing for now.

EUR

AUDEUR opens down at 0.5613, the DAX and CAC both closed down at -1.4% and -0.1%. Yesterday’s data release had Industrial Production m/m which came out at 0.2% weaker then expected at 0.7%, today will have Flash Employment Change q/q expected at 0.1%, Flash GDP q/q expected at 0.2% and Trade Balance expected at 8.8B down from previous 9.7B. A mostly quiet calendar for data next week until Friday when Eurozone PMI is slated for release.
 

GBP

AUDGBP opens down at 0.4948 after crossing the 0.5000 threshold following the Aussie Employment Data release yesterday, but is still sitting at a 6 month high. the FTSE closed down -1.0%. A large amount of data released yesterday with GDP m/m coming in at -0.1% down from 0.0% previous, Industrial Production m/m missing at -2.0 from 0.3% and Manufacturing Production m/m following suit missing at -1.7% from 0.6%. No data to be released today or over the weekend.
 

NZD

AUDNZD opens slightly up at 1.1554, with no strong data releases out this week. This morning, we had BusinessNZ Manufacturing Index which came out at 51.4 up from 50.1. Nothing out for rest of the day or over the weekend.