New Zealand dollar is under some pressure today after worse than expected job data. The job market contracted -0.4% qoq in Q3 versus consensus of 0.4% qoq. And, that's the first contraction in three years. Unemployment rate rose to 6.0% with participation rate falling sharply to 68.6% from 69.3%. Meanwhile, labor cost rose less than expected by 0.4% qoq. Last week, RBNZ left the OCR unchanged at 2.75%, after three rate cut, but maintained an easing bias. There are speculations of another cut in December and the job data reinforced this view.
Released from Australia, trade deficit narrowed to AUD -2.32b in September versus expectation of -2.85b. Exports rose 5.3% yoy while imports rose 4.7% yoy. Retail sales rose 0.4% mom in September, incline with consensus. RBA left interest rate unchanged yesterday and noted improved economic outlook. Today's set of data was inline with that view. Also released in Asian session, Japan monetary base rose 32.5% yoy in October. China Caixin PMI services rose to 52.0 in October. UK BRC shop price index dropped -1.8% yoy in October.
In Eurozone, ECB president Mario Draghi warned that "history shows that deflation can be just as damaging to the prosperity and stability of our economies as high inflation." And he pledged that "the Governing Council is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation."
Looking ahead, UK services PMI will be the main focus in European session. Eurozone will release services PMI and PPI too. US will release ADP employment and ISM services, as well as trade balance. Canada will also release trade balance.