Last week saw equities market fall to fresh multi-month low amid the unstoppable decline of the Turkish Lira, and with it, the Australian Dollar was dragged to yearly lows against its US counterpart.
Investors demand for haven assets as of late has increased, amid ongoing concerns surrounding the state of the Turkish Lira. The fear is that a collapse will have a run on effect across emerging markets and European Banks exposed to the embattled Turkish economy.
On the data front, China released its Industrial Production and Retail Sales numbers, both for July. Industrial Production came in 0.3% shy of expectations, posting at 6.0% with Retail Sales posting at 8.8% vs an expected 9.2%. Investors keenly keep an eye on Chinese data releases; it can have a broad impact on the markets due to China's influence on the global economy. While locally we saw the release of the July NAB's Business Confidence and Business Conditions indexes, seen unchanged at 6 and 15 respectively.
Closing out the week, the Australia dollar found some needed support, following a stronger than expected labour market print and bounce in value of the Chinese Yuan. The AUD jumped off intraday lows at 0.7225 following reports the unemployment rate fell unexpectedly to 5.3%, while year to date job’s growth remained positive as the pace of full time employment growth outstripped part-time work. The AUD jumped to 0.7271 on the back of the largely upbeat read as the print lends itself to a tale of gradual improvement, suggesting the next move in interest rates will be up.