Aussie Dollar Weakens Following Weak Jobs Report
AUD
The Aussie Dollar opens slightly lower against the major currencies following yesterdays weak local employment data. Our Employment Change released at -15.8K (exp. 11.7K), however the main focus was our Unemployment Rate which released at near 5-year highs of 4.5% (exp. 4.4%). Asian equities closed higher, with the ASX +0.3%, Shanghai Comp +0.2% and Nikkei +1.4 as materials and technology sectors were the highest performers. Commodities followed suit, with the largest movers being Natural Gas +2.9%, Crude Oil +2.3% and Silver +1.8%. Earlier this morning the S&P Global Manufacturing PMI for Australia released and came in at 52 for August, unchanged from July’s data. At the same time, the S&P Global Services PMI for the same period decelerated from 53.6 to 52.9.
USD
The AUDUSD opens flat at 0.7116 with the currency pair trading between 0.7104 and 0.7133 over the past 24 hours following the US Treasury’s announcement of a bond buyback program. The program has soured risk sentiment in American financial assets, with Wall Street closing in the red; Dow Jones -1.3%, S&P 500 -0.9% and Nasdaq -1.0%. This was counterbalanced with a strong print on the Philly Fed Manufacturing Index, releasing at 47.4 (exp. 24.1) as well as an average Unemployment Claims of 206K (exp. 210K). In US-Iran news, US President Donald Trump said that the US is essentially controlling the Strait of Hormuz, noting that Iran has some missiles and drones, but a low capacity to build more. Today will have minor economic data out of America, mainly Flash Manufacturing PMIs and Flash Services PMIs.
EUR
The AUDEUR opens slightly lower at 0.6090, falling from this week’s highs of 0.6150 as markets flocked to European assets over the week. European equities still closed lower overnight, with the DAX -0.4% and CAC -0.6%. No major economic data was released over the week, however this evening will see Flash Manufacturing PMI and Flash Services PMI releasing out of the Eurozone, Germany and France.
GBP
The AUDGBP opens slightly lower at 0.5218 this morning. English equities were flat with the FTSE at 0.0%. Some minor economic data was released yesterday, with the CBI Industrial Order Expectations beating market forecasts of -40 to release at -25. This afternoon will see English Retail Sales m/m, expected to see a sharp decrease of last month’s reading of +1.0% to -0.5%. This will be followed up with their Flash Manufacturing PMI and Flash Services PMI, which is expected to show an increase in factory and industry activity.
NZD
The AUDNZD opens lower at 1.1963, falling from this week’s highs of 1.2091 as markets start to bet on the RBNZ increasing interest rates later this year. No major economic data was released out of New Zealand yesterday, with today seeing their Credit Card Spending y/y. However, this reading typically has a minor effect on the NZD and the next key date is September 2, when the RBNZ has their next interest rate decision.