AUD up on jobs growth beat

Forex news for Asia trading Thursday 15 August 2019

Asia came in following a big down session for equities after poor German data and both UK and US yield curve inversions overnight. In the forex space we saw a stronger yen, and a weaker AUD and EUR (and others). 

Just scanning regional equities before I move on, there have been bounces from weak openings, but still net lower for the session here. Nikkei, for example:

Forex news for Asia trading Thursday 15 August 2019

While GBP has not moved much here its worth checking out the bullets above, we had some Brexit news out late in the UK evening. While parliament in the UK is on its summer break (really, you’d think there was enough to do to keep them all in London and busy) Brexit developments continue to evolve.

A lot of the incoming info today was AUD related, with a speech from RBA Deputy Governor Guy Debelle (see bullets above) that didn’t cover much new or surprising. Later we received the July employment report, which showed a huge beat for jobs added. The headline unemployment rate remained unchanged while the ‘trend’ rate ticked up by 0.1% – the ‘trend’ employment data is usually thought to be a more reliable indicator than the headline number and its likely the result today will do nothing to dissuade the RBA from its easing bias (although monitoring mode will persist until more data comes in for the months ahead after two consecutive cuts in June and July).

The AUD moved higher after the report, towards 0.6790. Its circa 0.6780 as I update. Pricing for RBA rate cuts ahead have fallen after the numbers, but as I said the rise in the trend unemployment rate will not change the RBA easing bias. 

EUR/USD is up small, as is kiwi. Otherwise not too much change to report for the majors.

The  People’s Bank of China set the onshore yuan a touch stronger for the day. Gold moved above 1520USD again but is currently just under. 

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