The United States Unemployment data last Friday came in at a big miss. This was because preceding the release of the Non-Farm Payrolls figure, the market was expecting 230,000 jobs to be created for the month of July. The actual figure came in at 209,000 Jobs created; this was a huge disappointment for USD investors. Considering the figure last month was much higher at 298,000, the USD experienced an immediate sell off. Further to these figures, the Unemployment Rate for the third time since April 2013 actually increased. This disheartened investors in the USD even further.
Early Saturday morning AEST, the US posted great figures from their manufacturing sector. The manufacturing Index which is a measure of economic expansion or contraction, originally sat at 55.3 which is considered “fair” expansion. After the July release, the index showed further expansion in the economy, shooting up to 57.1. Investors were expecting 56; therefore the USD was saved just before close of play on Saturday night.
Moving on to the first week of August there is plenty of scope for further movement. The AUD this week will be starting things off with Retail sales data. The Retail Sales figures are poised to improve this month (-0.5% previous; this month expected to be 0.3%). Tuesday will be busy as the AUD Cash Rate is under consideration again, followed by the accompanying statements from the Governor of the Reserve Bank of Australia, Glenn Stevens. Thursday, analysts are expecting slightly disappointing figures from the AUS Employment change and a stable reading in the AUS unemployment rate.
Keep an eye out for these events; make sure you have considered the risk of the aforementioned variables as they may negatively affect your bottom line.