Weaker employment report from Australia

17 November, 2016

Australian labour market conditions continued to soften in October. Another concerning outcome following news earlier this week that Australian wages grew at the slowest pace on record in the year to September.

According to the Australian Bureau of Statistics, employment rose by 9,800 in October in seasonally adjusted terms, missing expectations for an increase of 20,000. September’s decline, previously reported at 9,800, was revised significantly lower to a drop of 29,000.

Full time employment soared by 41,500, almost completely reversing the decline reported in September. The recovery, just like the plunge seen previously, is more likely than not the result of a statistical quirk in the data. The unemployment rate edged lower, mainly due to a fall in the participation rate.

 Market reaction to the data has been muted: partially due to the strength in full time hiring and hours worked and partially because investors are now sceptical about the veracity of the seasonally adjusted figures. Forgiving the wild monthly swings, the trend over the past 12 months is that labour market conditions are softening. Employment growth is decelerating, thanks to a decline in full time workers, while labour market participation and the employment-to-population ratio continues to trend lower.

The report supports our trade idea on the AUDUSD.


Source link  
Oil remains elevated, US production keeps rising

Baker Hughes report for the last week has showed another rise of US oil producers activity. The number of active rig counts rose by 8 w/w which obviously favours the further rebound of supply on the market...

DAX reached the nearest resistance

European stocks are trading higher today due to a general risk-on triggered by Donald Trump. He commented on deregulation and corporate tax cuts and commited to introducing a plan in 2-3 weeks which was more than enough for US stocks to surge towards new record highs...

DAX struggling to deny that it is caught by bearish channel

The sentiment on European equities is very cautious, but the main indices remain slightly above zero today. The Dax made an attempt in the morning to shake off its recent weakness, but upward move faded within one hour...


Deutsche with shorts on EURCHF

Bank remains short EURCHF targeting 1.02, Deutsche says that if speculators also upped the pressure, continued intervention would become ever costlier...

DAX - a volatile start of the week

The DAX started the week with a fall of 100 points that was quickly corrected. Currently the index a bit higher on the day and the first drop should be associeted with the political news...

Stocks begin the week on the back foot

Stock markets have started out in a defensive mode this morning with the FTSE 100 falling more than 60 points. Donald Trump is in the headlines once more as his latest executive order signed late on Friday has caused a furore around the globe...


USD back on track

The overnight trading results in a continuation of the US dollar gains. A broad based recovery of the US currency is what has been missing yesterday morning to call the market behavior a proper return of the Trump trade...

UK GDP grows faster than forecast

This morning saw the release of data which shows that the UK economy grew faster than expected in the final quarter of 2016. The pound is higher on the day but has seen some weakness since the release, perhaps due to some traders seeing this as a good opportunity to book some profits after a strong run higher in the past couple of weeks...

A small sell-off on Oil after API

After a closing bell on Wall Street, API issued a weekly report on Crude Oil inventories in the US. The report is pretty bearish for oil. Inventories rose by 2.93mln bbl with expectations at 2.5mln. If the data is confirmed it will be the 3 consecutive week of growth...

  


Share: