Mixed data from Australia leaves Aussie hanging
Australian unemployment rose to 3.5% in August despite 58,800 fresh jobs being created. The pool of the labour market must have grown at the same time. That slightly negative data was offset by a fall in Australian consumer inflation expectation which was down from 5.9% in July to 5.4% in August. Unsurprisingly, the GBPAUD rate is down 1.5 cents to AUD 1.7060 this morning.
NZ GDP improves
Economic growth in New Zealand was better than expected in Q2. Gross Domestic Product grew 1.7% in the three months to June when the markets had forecast just 1%. That brought the annual rate of growth up to 0.4%, a small recovery from the contraction of Q1 and also better than market forecasts of 0.2%. The Kiwi dollar didn’t gain as much as its Aussie counterpart overnight, advancing just a cent against the pound to this morning’s NZD 1.9195. NZ traders will now await the Business NZ purchasing managers index, due for release tonight.
Euro loses ground on Industrial production
A contraction of 2.3% in the eurozone industrial production during the month of July was much worse than the markets had anticipated. This adds further weight two calls for the European Central Bank to take a more cautious approach to interest rate hikes. hence the Euro lost a little ground yesterday. The EURUSD rate dropped back to $0.9960 and the GBPEUR rate rose to nearly €1.16 before settling back to €1.1560. There is very little eurozone data today but we will get a speech from Luis De Guindos, the Vice-president of the European Central Bank.