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AUD quiet leading up to employment data

AUD - Australian Dollar

The AUD fell throughout yesterday’s trading day, touching upon a high of 0.6865 to open at 0.6852 against the USD this morning. It has been a relatively quiet week so far on the macroeconomic data front for the AUD with no major news being released yesterday.

We can expect movement on Thursday morning with the release of the employment data. Expected to have a major impact on the Australian dollar, the data will show the change in number of employed people during the previous month, and the percentage of the total work force that is unemployed. Both of these are indicators of economic health, as it relates directly to consumer spending which accounts for the majority of overall economic activity.

Key Movers

On the Brexit front, Brexit Party leader Nigel Farage says he has ditched plans to take on the Tories in the 317 seats won by them in 2017, and will continue to stand elsewhere. This move will help the chance of Boris Johnson winning a majority government in the December election, and to avoid pressure not to split the pro-Brexit vote and reduce the chance of a second referendum that could cancel Brexit.

Over the weekend, US President Donald Trump appeared to dismiss any reports of the imminent lifting of tariffs and not agreeing to anything yet on the trade deal. This set market participants in a fret about the implications for global economic growth. Weaker than expected Chinese data released yesterday also did not help this sentiment, with the Chinese CSI 300 Index falling 1.8%.

In terms of macroeconomic news, the UK Office for National Statistics will release their CPI data tomorrow evening. Showing the change in the price of goods and services purchased by consumers, this is considered the UK’s most inflation data as consumer prices account for a majority of overall inflation.

Expected Ranges

AUD/CAD: 0.9015 - 0.9120 ▲

AUD/EUR: 0.9150 - 0.6285 ▲

GBP/AUD: 1.8570 - 1.9050 ▲

AUD/NZD: 1.0710 - 1.0825 ▲

AUD/USD: 0.6780 - 0.6895 ▼