Aussie jumps sharply in Asian session in response to stellar employment report. The job market grew 58.6k in October, almost four times of expectation of 15.2k. That's also the highest number since March 2012. Among the growth, 40k were full time jobs while 18.6k were part time jobs. Unemployment rate dropped to 5.9% versus expectation of being unchanged at 6.2%, and hit an 18 month low. Participation rate also rose from 64.9% to 65.0%. While there were expectations for RBA to cut interest rate again next year, the strong employment data would give the central more room to wait-and-see. Also, the expected hike from Fed could also lift some pressure from RBA for more cuts. AUD/USD is trading back above 0.7140 at the time of writing, comparing to this week's low of 0.7015. Current development suggests that the sideway trading from September low of 0.6905 would extend for a while.
Elsewhere, New Zealand business manufacturing index dropped to 53.3 in October. Japan domestic CGPI dropped -3.8% yoy in October. Machine orders rose 7.5% mom in September. UK RICS house price balance rose to 49 in October. Looking ahead, German CPI final will be featured in European session with Eurozone industrial production. US will release jobless claims and monthly budget statement. Canada will release new housing price index.
Markets are generally expecting more stimulus to be announced by ECB in December. But German finance minister warned that "monetary policy decisions also have a moral-hazard dimension." The German government's panel of economic advisers also expressed concerns that low interest rates were creating substantial risks for financial stability, which are threats to financial institutions. The panel's head Christoph Schmidt noted that "there are no grounds to force the loose monetary policy further." And "a slowdown in the pace is called for" for the quantitative easing program.