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Currency Market Analysis

Aug 16, 2019 | Currency Market Analysis

Global Themes

Aussie inches higher as local, US data improves

The Australian dollar was mostly higher yesterday after a better local employment report and stronger US data helped sentiment around the globe.

Locally, Australia’s July employment found 41k new jobs were created last month with the unemployment rate steady at 5.2%.

An increasing participation rate, now at 66.1%, kept the unemployment rate steady. This participation rate is the highest ever.

The news helped the AUDUSD to gain 0.4%.

Better data

Overnight, US markets were helped a series of better economic results.

Retail sales, two manufacturing gauges from Philadelphia and New York, and wages data all beat expectations.

The news helped US shares, as measured by the Dow Jones index, gain 0.4%, rebounding from two-month lows.

We been talkin’‘bout Jackson (Hole)

Next week, the focus shifts to the annual Jackson Hole symposium of central bankers held by the Kansas City Federal Reserve.

Most importantly, markets will be looking to guidance from the Fed chair Jerome Powell, due to speak later in the week.

Any signs of further rate cuts might help recently gloomy markets see a further turn in sentiment.

By Steven Dooley, Currency Strategist APAC


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