The Australian economy issued today a report showing that Australian employment change increased as employer hire more worker for the fifth consecutive month in July as extending a job boom, which increase the pressure on the central bank to raise interest rate next year.
In the past couple of months, the reversal of temporary hiring for the US Census has distorted the overall trend in employment. Nonetheless, there is little doubt that labour market conditions remain weak. We predict initial jobless claims were 474k for the week ending 7th August, down from 479k in
U.S. Dollar Trading (USD) surged higher throughout the day as safe haven flows helped out the world’s reserve currency. Stock markets around the world fell back 2% on a combination of US growth downgrades and renewed Eurozone banking concerns. Junes Trade Balance blew out to 49bn vs. 42bn previously.In US
Widespread selling. In the wake of yesterday’s FOMC meeting, peppered with negative news events from other corners of the globe, all the major risky asset classes recorded losses, the S&P500 currently down 2.8%. Most Asian bourses (China the exception) and all the Europeans closed in the red. For an explanation,
AUDUSD had an ugly day on a meltdown in risk appetite. Could tonight’s Australia employment data bring further misery to the pair? From a contrarian point of view, AUDUSD downside has become rather compelling again if we have a look at the IMM positioning (from US CME futures market).
The dollar and yen rose while risk assets fell on Wednesday. Yesterday’s dovish Fed outlook on the US economy and slowing Chinese economic growth pressured the risk prone currencies and asset prices. China showed further signs of economic slowdown as industrial production and retail sales slackened. The June US trade
The U.S. dollar surged and risk sentiment took a dive on growing concerns that the global economic recovery is faltering. The greenback gained despite weaker economic data as the U.S. June trade deficit widened to -$49.9bln from the prior month’s -$42.20bln (cons. -$42.1bln). EUR/USD had its biggest drop in 19
The Federal Open Market Committee (FOMC) has decided to reinvest the proceeds from maturing securities acquired through its $1.25 trillion mortgage-backed security (MBS) purchase program. The proceeds won’t be invested in short-term, but in long-term Treasuries. Federal Reserve (Fed) Chairman Bernanke has long argued that the MBS program constituted credit
Yesterday’s USD sell-off yielded to today’s USD rally as the market’s initial reception of the FOMC statement proved misleading. Recycling mortgage portfolio funds into treasuries is not enough for now to bring back the liquidity gravy train. As of thirty minutes after the opening of the US equity session, the
Following yesterday’s FOMC statement and the pop that higher-yielders and "risk-on" trades received in the wake of the decision by the Fed to reinvest proceeds from maturing agency-debt into longer-term Treasuries as well as the promise of low interest rates for "an extended period" today market sentiment reverted
