Analysts at TD Securities point out that Australia’s July employment report was a mixed bag as headline jobs at -3.9k briefly disappointed, but part-time -23k offset a decent pop in full-time +19k. Key Quotes “The small decline in the part-rate to 65.5% (from 65.7%) cushioned the bottom line, hence a lower 5.3% unemployment rate.” “The
Trading the News: Australia Employment Change Australia’s Employment report may curb the recent decline in AUD/USD as the economy is anticipated to add another 15.0K jobs in July. Another positive outcome may spark a bullish reaction in the Australian dollar as it boosts the outlook for growth and inflation, and the Reserve Bank of Australia
Analysts at TD Securities explained that conditions appear deeply oversold in EUR/USD and we expect a broad 1.13/1.1450 range to be respected. Key Quotes: “We continue to think that EUR/crosses like EUR/CHF and EUR/JPY will provide important directional cues given they are one of the few remaining reserve current account surplus currencies.” “We are mindful of
The pair tests fresh daily lows in the 110.90/80 band. The down move in spot echoes the fall in US-10 year yields. US Retail Sales expanded more than expected in July. After reaching fresh multi-day tops in the 111.45/40 band in early trade, USD/JPY has now retreated to the area of daily lows around 110.90.
Institue of International Finance’s chief economist recently crossed the news wires saying the emerging market capital flows following Turkish lira drop were indicative of a potential for contagion, as reported by Reuters. Key quotes Obstacles for IMF program for Turkey are quite high as it would require higher interest rates, credit tightening. Meanwhile, according to Turkish officials,
   •  Lingering fears about Turkey’s financial crisis exerted some fresh selling pressure around equities and was seen benefitting the Japanese Yen’s safe-haven appeal.     •  The pair retreated sharply from a one-week high level of 111.43 and broke below a short-term ascending trend-channel formation on the 1-hourly chart.     •  A follow-through weakness below
Talking Points: – USD/TRY has extended its retracement, but not because of improving conditions between the US and Turkey, but rather because the Turkish government is making it harder for foreigners to short the Lira. – A weak earnings report by a major Chinese financial institution has done more to move emerging markets today than
Euro Talking Points EUR/USD slips to fresh 2018 lows even as the Euro-Zone Gross Domestic Product (GDP) report instills an improved outlook for the monetary union, with the exchange rate at risk for a further decline as the bearish momentum appears to be gathering pace. EUR/USD Outlook Mired by Oversold Signal The Euro is back
Canadian Dollar Talking Points USD/CAD pares the advance from earlier this month even as U.S. President Donald Trump tweets that Canada’s ‘Tariffs and Trade Barriers are far too high,’ and recent price action warns of further losses as the exchange rate snaps the series of higher highs & lows from the previous week. USD/CAD Risks