New Zealand's Business manufacturing Index came in lower than market expectations while Japan’s Tertiary industry activity index rose more than expected. Australia's payroll data for September posted an increase of +9.1K which was higher than last month's reading of -10.8K but was lower than median estimates of +15K.
The unemployment rate unexpectedly fell to +5.6% surprising a market that was expecting the rate to stay steady at +5.8% while both full time and part time employment rose modestly. The RBA has to be encouraged by this as it seems like the 225bp of rate cuts are finally paying off by boosting demand. Improving business confidence and the new government has the market paring down expectations of further easing by the RBA this year and that too only if the currency starts to strengthen dramatically. The Aussie ratcheted higher following this release as it made session highs at 0.9475 but has since reversed course to currently trade at 0.9400.