Australian employment data undershoots
The total number of Australians in jobs grew by 6,700 in September, significantly weaker than the 65,000 jobs created in the previous month. It was also disappointing data on the participation rate which slipped from 67% last month to 66.7% in September. Understandably, this reduces the likelihood of further interest rate hikes from the Reserve Bank of Australia and, in turn, that reduces the demand for Australian dollars amongst international investors. So the GBP/AUD exchange rate trickled a little higher overnight, breaching AUD 1.9250 briefly but this pair has slipped slightly below that level in early European trade.
USD slips on Beige Book’s beigeness
The US Federal Reserve published its Beige Book yesterday evening. This is prepared as an anecdotal view of the various Federal Reserve districts. In the near term, the overall view is that the US economy is likely to experience stable or slightly weaker growth. However most businesses expect prices to continue to rise, so the dilemma for America’s central bank remains. The mild language used in the Beige Book has allowed the US dollar to surrender some of its recent gains. The GBP/USD rate is marginally higher at $1.2135 this morning and the EUR/USD rate is also fractionally higher at $1.0540. We have a few minor data releases from the US today but all eyes will be on the Federal Reserve Chairman, Jerome Powell and some of his colleagues when they give speeches after the UK’s trading has closed. Be prepared for overnight volatility as far as the UK markets are concerned.
Chinese property fears push GBPNZD higher
Such is the influence of the Chinese economy on others in the Asian and Australasian markets, that the significant concerns being raised over China’s property development market, and the risks of serious defaults, are knocking the value of the New Zealand dollar. The Kiwi has been under pressure due to slow growth and stubborn inflation, so this is not a welcome extra concern. The silver lining to this is that it is great news for NZD buyers. The GBP/NZD rate is back up to levels last seen a month ago. At an interbank rate of NZD 2.0840, the NZD is offering very attractive buying levels for those migrating to or importing from New Zealand.