Friday, May 10, 2013

FXPRIMUS : Daily Market Report for 9 May 2013: Aussie Continues Rebound Trend




Economic Insights

Australia adds more payrolls than earlier estimate 
Australia added 50,100 payrolls in April from the revised negative 31,100 figure in March. Full time jobs added 34,500 and part time jobs added 15,600. Also, the jobless rate fell to 5.5% from the earlier 5.6%. The entire labor report eased earlier worries that the jobs market was encountering a weaker outlook.
However, the labour market in the long-run still faces many headwinds due to the unclear Chinese economic status, leaving the resources and mining sectors’ outlook in Australia with a big question mark. Yesterday’s resilient exports growth in China raised scepticism due to unmatched figures in shipment activities in the U.S., Europe and even Hong Kong.
Yesterday, RBA governor Glenn Stevens lowered the interest rate to a record low at 2.75%, aiming to lower the Aussie value and boost credit growth in private sectors. In the near term, the labor report ruined his effect as the Aussie rose to 1.0250 from 1.0160 before the report. From here, we could see that the limited currency impact from the RBA’s decision was the case for a long time. The Aussie stayed above the parity against the Greenback for the past ten months, the longest stretch since the
Aussie was freely floated. Even with numerous rate cuts from the central bank in the latest ten months, the improving global macro put the domestic currency in favour among global investors.
Moving forward, the Aussie might continue staying in a range pattern since it neither tracks the RBA’s rate decisions closely nor the upbeat global equities.
China’s Consumer Price Index (CPI) remains subdued
China’s inflation condition remains subdued, according the latest CPI report in April. The CPI only rose 2.4% YoY from 2.3% in March, far below the government’s goal of 3.5%. Low inflation offered the government more room to raise utility prices. Food price rose 4% YoY from the earlier 2.7% as vegetable prices jumped. Last month’s rise was driven by food price inflation. The level of food prices unexpectedly jumped sharply last month while it fell last April. Price falls are quite common in April, but unusually cold weather this year pushed up vegetable prices. Yet, price pressures elsewhere remain subdued. Although core inflation edged up in recent months, inflation is low and stable across the range of non-food related sectors.
For Producer Price Index (PPI), the index fell further by 2.6% YoY after the 1.9% YoY drop in March, reflecting slow factory activities.


Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Flag Counter Visit Us www.deryworldscorp.web.id Visit Us www.deryworldscorp.asia

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