Australia: Positive employment data – TD Securities

Sandeep Kanihama FXStreet Contributor

According to Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, the August employment report of Australia was positive on the headline with 34.7k jobs added in the month, but the internals were soft.

Key Quotes

“The headline print was above the market (+15k) and TD's (+25k) forecast thanks to +50.2k part-time jobs added in the month.”

“The participation rate rose to a record high 66.2% and while the unemployment rate was essentially unchanged (from 5.24% to 5.25%) it was rounded up to 5.3%.”

“However the underemployment rate edged up +0.1% and after rounding the underemployment rate jumped from 8.4% in July to 8.6% in August.”

“This takes the underutilisation rate from 13.6% in July to 13.8% in August and considering this was at 13% in Feb, spare capacity is clearly on the rise.”

“The miss on GDP, the dovish tilt to the Sep Minutes this week and the steady rise in spare capacity suggest there is little need for the RBA to wait till Nov.”

“Accordingly TD brings forward its Nov 25bps cut to 0.75% to Oct. We leave our 0.5% cash rate call for Q2 next year unchanged from prior forecasts.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.