Friday's US Non-Farm Payroll Employment Came Out Stronger than Expected - APAC Update

Xe Corporate APAC

February 3, 2019 3 min read

The AUDUSD opens at 0.7245 (mid-rate) and the NZDUSD opens at 0.6892 (mid-rate) this morning.

Upbeat US economic data releases is supporting the markets, and pushed US Treasury yields higher.

Friday’s US employment and manufacturing data reports were standout performers with the Labour Department reporting non-farm payroll employment surged up by 304K jobs in January. That is well ahead of the forecasted 165k jobs increase, while growth in US manufacturing activity unexpectedly accelerated in the month of January.

The ISM Purchasing Managers' Index climbed to 56.6 in January from a revised 54.3 in December. Economists had expected the manufacturing index would inch down to 54.0 from 54.1 originally reported for the previous month. Although the headline employment number was well ahead of expectations December’s previously reported 312k increase was downwardly revised to 222K. Both two-year and ten-year Treasury bond yields increased by 5.8 basis points  to 2.52% and 2.69% respectively.

The key domestic driver for the NZD this week will be Thursday’s quarterly employment report. Current expectations are for employment to increase by 0.3% following on from Q3’s surprise 1.1% spike.

Global equity market closed out the week marginally higher, - Dow +0.26%, S&P 500 +0.08%, FTSE +0.74%, DAX +0.07%, CAC +0.53%, Nikkei +0.07%, Shanghai +1.30%.

Gold prices edged lower Friday, closing out the week at $1,317 an ounce. WTI Crude Oil prices rallied strongly on Friday up 3.5% trading at $55.55 a barrel.

Mid-market rates
AUDUSD0.7245-0.3%NZDUSD0.6892-0.3%AUDEUR0.6325-0.4%NZDEUR0.6015-0.3%AUDGBP0.5537-0.1%NZDGBP0.5265-0.1%AUDJPY79.350.4%NZDJPY75.510.4%AUDNZD1.0505-0.1%NZDAUD0.9505-0.1%GBPAUD1.80600.1%NZDCAD0.9025-0.7% GBPNZD1.89930.1%
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