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Forex & Equities: Aussie Slammed; Unemployment Rate at 12 Yr High

Posted by Akhilesh Ganti on Aug 6, 2014 10:55:00 PM

Australia's July employment report (see table) came out much lower than market estimates as the unemployment rate (chart below) rose to its' highest level since August 2002. All told the economy lost 0.3k jobs as 14.5k full time jobs were added while 14.8k part timers were let go. The participation rate rose by 0.1% which seems at odds with the sharp rise in the unemployment rate and raises the possibility of an error somewhere. Nonetheless, the market reacted to the posted numbers and aggressively sold the Australian unit across the board. AUD/USD, which had been trading around 0.9360 prior to the release, immediately spiked lower by 50 pips and has since broken below 0.9300 to its current lows of 0.9281.

{chart: Bloomberg}(click to enlarge)
AU employmentRate 080614

Economic Data - {Source: Bloomberg}

Country Event Period Survey Actual Prior Revision
Australia AiG Perf of Construction Index Jul -- 52.6 51.8 --
Japan Official Reserve Assets Jul -- $1276.0B $1283.9B --
Japan Japan Buying Foreign Bonds 1-Aug -- ¥897.4B -¥302.0B -¥301.6B
Japan Japan Buying Foreign Stocks 1-Aug -- ¥246.2B ¥24.3B --
Japan Foreign Buying Japan Stocks 1-Aug -- ¥94.9B ¥204.5B ¥203.3B
Japan Foreign Buying Japan Bonds 1-Aug -- ¥367.5B ¥164.7B --
New Zealand QV House Prices YoY Jul -- 7.60% 8.00% --
Australia Employment Change Jul 13.2K -0.3K 15.9K 14.9K
Australia Unemployment Rate Jul 6.00% 6.40% 6.00% --
Australia Full Time Employment Change Jul -- 14.5K -3.8K -3.9K
Australia Part Time Employment Change Jul -- -14.8K 19.7K 18.8K
Australia Participation Rate Jul 64.70% 64.80% 64.70% --
Japan Tokyo Avg Office Vacancies Jul -- 6.2 6.45 --

Ranges:{WWM's New ALPHA Trader - DAILY charts [EUR, GBP, AUD, YEN, GOLD, OIL, DXY]}(click to enlarge)

FX 080714

Equities:{WWM's New ALPHA Trader - DAILY charts [Dow30, SP500, Nasdaq100, Nikkei225, China, HKG40, Nifty50, ASX200]}(click to enlarge)

STOCKS 080714


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