AUD Flounders After Mixed Jobs Report
AUD
The AUD opens lower against all majors with commodities also dropping, Gold, Silver and SGX Iron Ore all dropping by 0.2%. This comes despite a mixed Aussie jobs report yesterday where employment growth surged by 56,300 - nearly four times the expected figure - though the gain was entirely driven by part-time hiring, with the full-time workforce declining by 23,700. Despite this split, total hours worked across the labour market grew by 0.5%. The Unemployment Rate increased to 4.0%, driven by a record-high labour force participation rate of 67.1%. Without the increase in the workforce, the Unemployment Rate would have remained steady. Asian equities closed higher, the Nikkei +0.3%, Hang Seng +1.2%, and Shenzhen +0.1%. Locally, the ASX climbed +1.4% as financials and real estate lead gains. Data for today fairly quiet with only the CB Leading Index m/m being released jumping up 0.7% from a previous 0.1%.
USD
AUDUSD opens the day lower, with the pair keeping within a tight range within the past 24 hours, opening this morning at a rate of 0.6210. Wall Street had a soft close to the day, with the DOW JONES closing down 0.1%, NASDAQ down 0.3% and the S&P 500 closing flat. Some important data coming out last night for US Retail Sales both coming short of forecasted results, Core Retail Sales m/m was expected to grow from 0.2% to 0.5%, coming in under at 0.4% as well as Retail Sales m/m expected to drop from 0.8% to 0.5%, coming in at 0.4%. Even so, Thursday’s figures point to a consumer that held up well in the holiday season, supported by wages rising faster than prices. While underlying inflation eased last month, Americans are still contending with a high cost of living, and some retailers are considering raising prices in anticipation of higher tariffs on imported goods after Trump takes office next week. Unemployment Claims came in over previous 203k result at 217k which was forecasted to grow to 210k and manufacturing activity in region increased overall, Philly Fed Manufacturing Index previously at -16.4 forecasted to come in at -5 ended up exceeding their long run averages at 44.3, suggesting more widespread expectations for overall growth over the next six months. Tonight, we'll see Building Permits and Industrial Production from the US.
EUR
AUDEUR opens the day slightly lower, the pair maintaining are very tight range with the past 24 hours, opening this morning at a rate of 0.6029. European equities were in the green across the board DAX up 0.4% and CAC at a positive increase of 2.1%. No significant data coming out last night, ECB Monetary Policy Meeting Minutes were release with the most notable topics including the debate over the size of the rate cut (25bp vs 50bp), a still relatively optimistic outlook for growth and inflation, and the decision to temporarily disregard any potential impact of the US elections on the eurozone economy. Nothing too noticeable being released today, Final CPI y/y and Final Core CPI y/y forecasted to come out flat compared to previous results.
GBP
AUDGBP opens the day lower, the pair moving at a fairly flat rate within the past 24 hours, opening today at 0.5061. Equities coming in positive, FTSE with a noticeable growth of 1.1%. Major data coming out yesterday in the form of GDP m/m which was forecasted to grow from their last drop of -0.1% to 0.2%, coming in slightly short at 0.1%. The figures from the Office for National Statistics represented the first gauge of gross domestic product in the period after finance minister Rachel Reeves’ Oct. 30 budget which included increases in the tax burden on employers. Tonight, Retail Sales m/m being released forecasted to double their previous growth from 0.2% to 0.4%, suggesting an improvement in consumer spending which accounts for the majority of the overall economic activity.
NZD
AUDNZD opens at 1.1075, basically flat on yesterday's open. NZD news was fairly quiet with only FPI m/m coming our yesterday seeing alight growth of 0.1% previously at -0.1%. This release does not include actual rentals for housing data for December 2024. Another quiet day today, the BusinessNZ Manufacturing Index printed at 45.9, up a little from the previous 45.2. Still contraction in the Kiwi manufacturing sector.