Australia Unemployment Rate Falls

Today’s Economic events

• Australia MI Inflation Expectations 3.60% vs. 3.40% previously
• Australia employment change 26.1k vs. 18.6k
• Australia unemployment rate 5.70% vs. 5.90%
• Switzerland PPI m/m 0.0% vs. -0.20%
• Eurozone final CPI y/y 0.0% vs. -0.10%; core CPI y/y 1.0% vs. 1.0%
• BoE leaves interest rate unchanged at 0.50%
• Canada HPI m/m 0.20% vs. 0.20%
• US CPI m/m 0.10% vs. 0.20%; core CPI m/m 0.10% vs. 0.20%
• US weekly unemployment claims 253k vs. 270k

Coming Up

• FOMC Member Powell speech
• Bo Member Shafik speech

The markets opened today with the US dollar in the driving seat which got some boost in the overnight session as China’s PBoC fixed the Yuan 0.46% lower. The dollar edged across the board with USDJPY posting an early session high to 109.54 before moving sideways. The currency pair is currently down 0.06%, trading at 109.3.

Data from Australia today saw the March employment numbers pointing to healthy growth. Australian unemployment rate fell to 5.70%, against forecasts of 5.80% while the monthly employment change also jumped with the economy seen adding 26.1k, beating forecasts of 18.6k. The Aussie did not react much to the news as the currency pair fell to post session lows of 0.7623 but the losses were quickly offset as AUDUSD posted a strong intraday rally, gaining 0.82% to trade at 0.771. NZDUSD is down 0.77% for the day failing to recoup its initial losses. The Kiwi is trading at 0.686 at the time of writing.

[Tweet “Australian unemployment rate fell to 5.70%, against forecasts of 5.80%”]

Asian equity markets continue to trade higher with the Nikkei225 gaining 3.23% while the Shanghai Composite was up 0.52%.

In Europe, economic data saw Switzerland producer price index coming out flat in March but better than analyst expectations of a 0.20% declines. Eurozone’s final CPI was confirmed to be flat at 0% on the headline while the core CPI was confirmed at 1.0%. EURUSD did not react much to the data as the currency continued to push lower to test session lows at $1.1233 before managing to reverse some of the declines. EURUSD is currently down 0.09% at the time of writing.

The British Pound came under pressure ahead of the BoE’s monetary policy meeting. The interest rate was unchanged at 0.50% with a unanimous vote. GBPUSD continued to post steady declines as the cable fell to a 2-day low at $1.41 briefly and is down 0.38%.

European equity markets are mixed with the German DAX up 0.29% while the London FTSE100 is staying flat.

The NY session opened with US consumer price index failing to rise as expected. Headline CPI for the month increased 0.10%, falling below expectations of 0.20%, while core CPI inched higher by 0.10%, again missing estimates of a 0.20% increase. The weekly unemployment claims were, however, better than expected, rising 253k against expectations of 270k. The dollar initially lost its footing after the data was released.

[Tweet “WTI Crude oil prices continue to rally posting 1.35% gains for the day”]

Commodity markets are looking to recoup their losses from yesterday as Gold prices fell to a 4-day low at $1229 before managing to push higher. Gold is currently down 0.41%, trading at $1237 an ounce. WTI Crude oil prices continue to rally posting 1.35% gains for the day. Oil is seen trading near yearly highs of $42 a barrel.

US equity markets are looking to a modest open with Dow Jones and the S&P500 futures expected to rise 0.05%. The remainder of the evening is relatively quiet with Fed member Powell and BoE member Shafik expected to speak.