Stronger-Than-Expected Jobs Data and Renewed Trade Optimism Make for a Relatively Sunny US Outlook

Xe Corporate APAC

November 3, 2019 2 min read

The AUDUSD opens at 0.6918 (mid-rate) and the NZDUSD opens at 0.6436 (mid-rate) this morning.

Stronger than expected US jobs data along with renewed optimism about a US-China trade deal saw risk appetite increase going into Friday’s close.

The US Labour Department reported non-farm payroll employment increased by 128k jobs in October, with combined upward revisions of 95k jobs for August and September. The October result was well ahead of the 89k increase forecast.

Renewed optimism surrounding the US-China trade deal came after a report from China's Xinhua News Agency said negotiators have "reached consensus on principles."

US equity markets rose sharply on the news with the Nasdaq and the S&P 500 posting new record closing highs.

The only cloud on an otherwise bright US outlook came by way of another disappointing manufacturing number, with the Institute for Supply Management reporting its index inched up to 48.3 in October shy of the 48.9 expected result and still contracting.

Key domestic drivers for the AUD this week include this mornings retail sales and tomorrow’s RBA monetary policy statement.

The key data release for the NZD this week will be Wednesday’s quarterly employment report, with employment expected to inch up by 0.25 and unemployment to rise to 4.1% from 3.9% in Q2.

Global equity markets closed broadly higher Friday - Dow +1.11%, S&P 500 +0.96%, FTSE +0.75%, DAX +0.73%, CAC +0.56%, Nikkei -0.33%, Shanghai +0.99%.

Gold prices were little changed on Friday closing out the week at $1,513 an ounce. WTI Crude Oil prices spiked higher on Friday, up 4.0% closing out the week at $56.27 a barrel.

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