Sponsored Links
Thursday in Asia, the Aussie plummeted against its major counterparts amid a report that showed Australia's employment fell in August by more than economists estimated, adding to signs the nation's central bank won't raise interest rates anytime soon.
The aussie dropped to a 3-day low against the NZ dollar and a 6-day low against the euro and the yen.
The number of people employed dropped 27,100 from July, when it rose a revised 33,700, the statistics bureau said in Sydney today. Most economists were looking for a decline of 15,000 jobs. The jobless rate held steady at 5.8 percent.
Full-time jobs dropped 30,800 in August as companies including BHP Billiton Ltd. cut workers amid the global recession that has eroded demand for exports of iron ore and coal. Part-time work increased 3,800.
The participation rate, which measures the labor force as a percentage of the population aged over 15, fell 65.1 percent in August from 65.3 percent, today's report showed.
Falling employment adds to signs the economy may slow in coming months after reports yesterday showed retail sales in Australia unexpectedly fell in July and home-loan approvals ended a record nine-month run of gains as the effect of government stimulus spending wanes.
The drop in employment may also erode consumer spending that helped Australia's economy expand in the second quarter at the fastest pace in more than a year. Gross domestic product gained 0.6 percent in the second quarter from the previous three months, when it grew 0.4 percent.
Today's report supports the government's view that it is too early for it to wind back A$22 billion ($19 billion) in spending on new roads, railways, ports and schools.
The Aussie, which closed yesterday's trading at 79.35 against the yen fell to a 6-day low of 79.09 in Asian deals on Thursday. If the aussie-yen pair weakens further, it may find support around the 77.1 level.
On the back of strong equities, the aussie-yen pair jumped to a new multi-week high of 80.04 in early Asian trading yesterday. However, amid disappointing Australian retail sales and home loans report, the Australian currency pared its gains and lost more than 1% thus far.
During Asian deals on Thursday, the Aussie slipped to a 6-day low of 1.6962 against the euro. This may be compared to Wednesday's closing value of 1.6898. On the downside, 1.724 is seen as the next target level for the aussie.
The Aussie surged up to a 13-month high of 1.6721 against the euro earlier this week as investors' risk appetite boosted higher-yielding currencies amid a better than expected U.S. employment report on Friday.
But the aussie plunged on Tuesday as the euro rebounded on the German trade balance report, which showed an unexpected increase in July. The aussie has declined 1.4% against the euro from a 13-month high.
Amid the announcement of the Reserve Bank of New Zealand's interest rate decision in early Asian deals today, the Aussie soared to a fresh 1-month high of 1.2486 against the NZ dollar. But the aussie-kiwi pair slipped 1.1% thereafter and it is currently trading at a 3-day low of 1.2343. The next downside target level for the aussie is seen at 1.231.
The Reserve Bank of New Zealand Governor Alan Bollard left the official cash rate at a record-low of 2.5 percent today as monetary policy makers saw a bottoming-out of the nation's economy. Bollard said the rates are expected to remain at their current level, or go lower, into next year.
"There is more evidence that the decline in economic activity is coming to an end, and that a patch recovery is underway," Bollard said in a statement accompanying the decision. "This is partly due to recovery in our trading partner economies in the June Quarter, and these look likely to continue expanding long term."
The Australian dollar slumped to 0.8581 against the U.S. currency in Asian deals on Thursday. If the aussie-greenback pair drops further, it may likely target the 0.853 level. At yesterday's New York session close, the pair was quoted at 0.8619.
After hitting a 5 1/2 -year low of 0.6012 in October 2008, the Aussie strengthened 31% against the U.S. currency and reached a new 1-year high of 0.8671 yesterday as prospects of a global economic revival spurred demand for higher-yielding assets.
Australia's economy has outperformed most other developed nations, expanding 0.6 percent in the second quarter from the previous three months, when it grew 0.4 percent.
Business confidence jumped in August to the highest level in almost six years, and consumer confidence climbed in September to the highest level in more then two years, reports showed this week.
Domestic demand has also been stoked by central bank Governor Glenn Stevens' decision to slash the overnight cash rate target by 4.25 percentage points to 3 percent between September 2008 and April 2009.
Stevens left the benchmark unchanged last week for a fifth month and signaled his next move will be to increase borrowing costs from their "emergency" setting.
The U.S. dollar became the cheapest funding currency this week, making it more attractive as a means of financing purchases of higher-yielding assets.
Questions over the dollar's status as a global reserve currency fueled selling of the U.S. unit this week. A weaker dollar tends to prompt buying of gold as an alternative asset.
Gold broke through the $1,000 mark for the first time since February on Tuesday and rallied to an 18-month high. The upsurge in gold reflects inflation fears, as excessive liquidity pumped into the system to bring about some stabilization in the financial sector is expected to stoke inflation.
During Asian deals on Thursday, the Aussie declined to 0.9263 against the Canadian dollar. That was down 0.9% from yesterday's new multi-month high of 0.9350. The near term support for the aussie-loonie pair is seen at 0.920.
The loonie advanced today as oil prices rallied for a fourth day, edging above $71.50 a barrel after bullish inventory data and encouraging words from OPEC increased investors appetite for crude.
The cartel left output unchanged, as expected, with Saudi Oil Minister Ali al-Naimi saying prices were being driven by economic recovery, and that high levels of inventory had become irrelevant to the market.
NYMEX crude for October delivery stood at $71.71 a barrel at 10:20 pm ET, up 40 cents from Wednesday's settlement. London Brent crude rose 22 cents to $70.05 a barrel.
Investors are now likely to focus on the European session, in which the French July industrial production and trade balance, Italian July trade balance and the second quarter final GDP are expected.
Across the Atlantic, the U.S. and the Canadian trade balance reports for July have been slated for release in the North American session.
The U.S. weekly jobless claims report for the week ended September 05 is also due at 8:30 am ET.
At 9:00 am ET, the Bank of Canada is scheduled to announce its interest rate decision. The central bank is widely expected to leave rates unchanged at 0.25%.
0 komentar:
Post a Comment