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AUD steadies after weak US Non-Farm payrolls

Published March 11, 2019

Author: Dennis Li

Over the weekend, we saw the AUD fighting to hold above its key psychological 0.7000 level against the USD, made easier after a sharply lower-than-expected figure of 20,000 non-farms payrolls job from the US in February, its lowest level since September 2017 while the unemployment rate fell back to below 4%. The mixed report was another indication the US economy is slowing while Fed’s Powell made no mention of the latest numbers, noting simply that most measures of the labor market ‘looks as favourable as they have in many decades’ and ‘nothing in the outlook demanding an immediate policy response’.  

The AUDGBP edged up with Brexit news weighing on the pound and another Parliamentary vote is coming on Tuesday. According to a senior Chinese official on Saturday, China and the US are still working day and night to achieve a trade deal that can eliminate the tit-for-tat tariffs as Chinese trade data released on Friday added to signs that the economic activities are slowing further in the first quarter.

  • President Donald Trump on Monday will ask the US Congress for an additional $8.6 billion to help pay for his promised wall on the US-Mexico border.
  • Chinese Trade data disappointed market expectations, with annual export growth slumping – down over 20% compared to expectations of a more modest 5% fall. Import demand also eased with softening domestic demand.
  • Investors will need to keep their eyes on US retail sales and CPI data releases on Tuesday and Chinese retail sales on Thursday this week.