US ADP Payrolls post strong numbers. Focus on Yellen speech and BoC
- Japan monetary base y/y 32.5% vs. 35.2%
- Australia GDP q/q 0.9% vs. 0.7%
- UK Construction PMI 55.3 vs. 58.4
- Eurozone flash CPI estimates y/y 0.1% vs. 0.2%; Core CPI y/y 0.9% vs. 1.1%
- Eurozone PPI m/m -0.3% vs. -0.4%
- US ADP nonfarm employment change 217k vs. 191k
- Fed Chair Yellen speech
- US Revised nonfarm productivity q/q 2.2% vs. 2.2%
- US revised unit labor costs q/q 1.8% vs. 1.1%
Later
- BoC Rate statement
- US Crude Oil inventories
- Fed Chair Yellen speech
The Asian trading session saw the Aussie coming under fundamental risks with the quarterly GDP. Data for the third quarter showed the Australian economy expanding at a pace of 0.9% beating estimates of 0.7% GDP growth. The third quarter GDP came about after an upward revised second quarter GDP from 0.2% to 0.3%. The Aussie, which was already trading near a one month high, did not move much as the currency hit resistance near the daily session highs of 0.7336, yesterday’s high. At the time of writing, AUDUSD is down -0.09%.
The Kiwi is weaker today, down -0.5% after NZDUSD touched a 4-week high near 0.6686 yesterday. GDT data released late yesterday showed an uptick, after falling for two previous consecutive GDT prints. The Kiwi however eased back from its bullish momentum hitting session lows near 0.6645.
The Japanese Yen is weaker today against the Greenback, with USDJPY up 0.34% for the day. Prices touched a session high near 123.365 before easing back lower.
The European trading session saw the UK construction PMI coming out weaker at 55.3, missing estimates of 58.4. The GBPUSD continued its downtrend, falling -0.51% at the time of writing, trading near 1.50 after a failed attempt to push higher above 1.507.
The Eurozone flash CPI estimates were the main fundamental data today which showed a miss on estimates. The Eurozone headline CPI increased 0.1%, while the core CPI fell back to 0.9%. The Euro is down -0.41% for the day, falling off the opening price near 1.063. EURUSD and hit a session low near 1.058.
In the US trading session, the ADP payrolls report showed an increase of 217k, beating estimates of 191k. Last month’s payroll numbers were also revised higher from 182k to 196k. The US Dollar remained strong into the data including Fed Chair’s Yellen speech where she did not touch much upon the monetary policy. Ms. Yellen is due to speak later again today followed by her testimony to the congress due tomorrow.
Later in the evening, the markets will be looking to the Bank of Canada’s interest rate decision. Expectations are for the BoC to keep rates unchanged at 0.50%, but the Central Bank could strike a dovish tone in light of recent weak economic data. USDCAD is up 0.31% for the day, trading at 1.34 at the time of writing.
