Earlier in the Day:
The economic calendar was relatively busy through the Asian session this morning.
Economic data included 2nd GDP figures out of New Zealand and August employment numbers out of Australia.
The markets also responded to the Wednesday FOMC interest rate decision, projections and forward guidance.
On the geopolitical front, there were no major events to influence in the early hours.
Later this morning, the is also BoJ scheduled to deliver its monetary policy decision that is unlikely to deliver too many surprises…
For the Kiwi Dollar
In the 2nd quarter, the economy grew by 0.5%, quarter-on-quarter, easing from 0.6% in the 1st. Economists had forecast growth of 0.4%.
According to NZ Stats,
-
Service industries, which account for approx. 67% of the economy, supported growth in the 2nd quarter, rising by 0.7%.
-
Within the service industry, eight of the 11 industries saw growth, with household expenditure on services rising by 0.5%.
-
By contrast, goods-producing industries fell by 0.2%, weighed by manufacturing and construction.
The Kiwi Dollar moved from $0.63124 to $ upon release of the figures. At the time of writing, the Kiwi Dollar down by 0.25% to $0.6305.
For the Aussie Dollar
August employment figures weighed on the Aussie Dollar in the early hours. According to figures released by the ABS,
-
Employment increased by 34,700 persons in August. Economists had forecasted a 10k increase, following a 41.1k rise person rise in July.
-
There was a net decrease of 15,500 persons in full-time employment and 50,200 increase in part-time employment.
-
Year-on-year, full-time employment increased by 186,700 persons, while part-time employment increased by 124,000 persons.
-
The unemployment rate rose 5.2% to 5.3%, which was in line with forecast.
-
Seasonally adjusted, the employment to population ratio increased by 0.1 basis points to 62.7%.
The Aussie Dollar moved from $0.68101 to a low $0.67912 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.51% to $0.6793. While the headline figures were positive, a fall in full-time employment and a rise in the unemployment rate weighed.
Elsewhere
At the time of writing, the Japanese Yen was up by 0.25% to ¥108.18 against the U.S Dollar.
The Day Ahead:
For the EUR
It’s a quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.
A lack of stats will leave Wednesday’s FOMC economic projections and Brexit chatter in focus. Any increased tension in the Middle East will also need to be factored in.