Compass Global Markets' Blog

Market Update - 4th September 2017 - U.S Jobs Growth Stalls Along With U.S Vehicle Sales

Posted by Patrick Downes on September 4, 2017 at 8:20 AM

U.S jobs data released over the weekend showed a slowing in jobs growth in addition to a tick higher in the unemployment rate to 4.4%. The economic data was mostly unexpected particularly given the preliminary jobs numbers released mid-last week showed strong signs of growth. We also saw U.S total vehicle sales continue their downward spiral with the latest reading the lowest since May 2014 - in fact total vehicle sales have been on the decline since around Trump entered office; read into that what you like, but it's certainly not an endorsement from consumers or an endorsement on consumers feelings towards the U.S economy and interest rates.

U.S equities also appear to have stalled of late as we get closer and closer to the month of October which has in the past seen the end of many equity bull markets. I'd certainly suggest caution to those heavily invested in U.S equities or those with exposure to U.S equities via ETFs in their Super.

What does all this mean for the Aussie dollar? Well, typically the Aussie dollar has been a risk currency, where good economic data and global economic stability tend to bid it higher, on the other hand when risk aversion peaks we tend to see a sell-off in both equities and the AUD. Those importers or exporters with exposures due over the next 3-6 months may wish to look at some hedging arrangements to either cover costings or just have certainty on what you'll be paying for your imports and exports.

AUD EXCHANGE RATES:

AUD/USD – 0.7964

AUD/GBP – 0.6143

AUD/EUR – 0.6703

AUD/NZD – 1.1127

AUD/JPY – 87.444

DATA RELEASES TODAY:

AUD - ANZ Job Advertisements & Company Operating Profits at 11.30am

GBP – Construction PMI at 6.30pm

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Report, Market

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