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Forex - Aussie holds weaker after jobs, fireworks from U.S. debate noted

Published 10/19/2016, 10:51 PM
Updated 10/19/2016, 10:53 PM
Aussie holds weaker
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Investing.com - The Aussie held weaker in Asia on Thursday after disappointing jobs data that widely missed expectations, and markets largely unruffled but fascinated by the U.S. presidential debate.

AUD/USD traded at 0.7689, down 0.44%, while USD/JPY changed hands at 103.53, up 0.07%. GBP/USD traded up 0.07% to 1.2298. The final of three U.S. presidential debates between Donald Trump and Hillary Clinton showed continued sharp language over areas from taxes to foreign policy with one of the most bitter exchanges over which candidate would be able to deal better with Russian President Vladimir Putin. Trump also declined to assure he would accept the poll results of what he claimed was a rigged process rife with voting fraud.

In Australia, employment change figures for September showed a plunge of 9,800 jobs, compared to a gain of 15,000 seen and the the second straight monthly drop. The figures came under a participation rate that dipped to 64.5%, below the expected 64.8%, for an unemployment rate rate steady at 5.6%, less than the 5.7% estimated. The figures confirm job gains mainly in part-time employment. So far this year, the economy has added 50,700 jobs but this includes a 162,800 rise in part-time jobs, while full-time employment is down by 112,100.

Also reported was the NAB quarterly business confidence survey that came in at plus-5 for the third quarter, from plus-3 previously. NAB said the leading indicators from the survey continued to point to a recovering non-mining economy. NAB, however, warned recent downward trends in retail are a concern and warrant close monitoring.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.01% to 97.88.

Overnight, the dollar held steady against the other major currencies on Wednesday, still hovering within close distance of a seven-month peak as investors were digesting the release of mixed U.S. housing sector data.
The U.S. Commerce Department said that housing starts slumped 9.0% to 1.047 million units last month from August’s total of 1.150 million units, revised from the initial 1.142 million.

Analysts had expected a rise of 2.5% from the initial number to 1.175 million in August. Meanwhile, building permits rose 6.3% to 1.225 million units last month from 1.152 million in August. Economists had forecast a 0.9% gain to 1.165 million units in September.

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