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$A higher on strong Chinese trade data

Reported by AAP
Thursday, August 8, 2013
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The Australian dollar is higher despite weak jobs figures, boosted by better than expected trade data out of China.

At 1700 AEST on Thursday, the local unit was trading at 90.88 US cents, up from 89.64 cents on Wednesday.

The Australian dollar fell more than a quarter of a US cent to 89.92 US cents at 1135 AEST after the release of the disappointing jobs figures from the Australian Bureau of Statistics.

Australia's unemployment rate remained steady at 5.7 per cent in July, but total employment was down by 10,200 while the participation rate fell from 65.3 per cent to 65.1 per cent.

But the local currency rallied after data out of China showed a rebound in trade in both directions after exports and imports declined in June.

"The unemployment rate was unchanged but overall, it was a weak report and we did sell off," said ANZ foreign exchange strategist Andrew Salter.

"But that was reversed following the Chinese data release."

"We all know the labour market is soft and the data today didn't really change that view, so the surprise was indeed that the Chinese external sector looks to be a little bit better than we thought."

At 1700 AEST, the Australian dollar was at 87.38 Japanese yen, up from Wednesday's close of 86.87 yen, and at 68.00 euro cents, up from 67.35 euro cents.

Meanwhile, Australian bond futures prices were mixed in response to the mixed labour force data, said Westpac senior market strategist Damien McColough.

"The employment piece was a bit weaker, but unemployment didn't rise so it was a little bit confusing," Mr McColough said.

"It was just a consolidate-and-wait day and once the unemployment figures didn't give any decisive direction, the market didn't really do anything."

Mr McColough said the market was waiting for Friday when the Reserve Bank would release its quarterly statement on monetary policy.

At 1630 AEST on Thursday, the September 10-year bond futures contract was trading at 96.320 (implying a yield of 3.680 per cent), up from 96.305 (3.695 per cent) on Wednesday.

The September three-year bond futures contract was at 97.460 (2.540 per cent), down from 97.480 (2.520 per cent).

21/11/2014 13:13Sydney, Australia. 21 November,2014
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