Daily digest market movers: Australian Dollar depreciates on US data, geopolitical risks

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  • The Australian Dollar will likely remain pressured due to several factors. Geopolitical risks, such as over-the-weekend developments in the Middle East, could hurt risk appetite for  the AUD.
  • The Aussie’s economic docket will feature the NAB Business Confidence and the Westpac Consumer Confidence for September and October, respectively. Following that, traders eye RBA’s Hauser, Kent and Hunter speeches.
  • US Nonfarm Payrolls increased by 254K in September, significantly surpassing the estimated 140K and the upwardly revised August figure of 159K. The Unemployment Rate fell from 4.2% to 4.1%, lower than expected.
  • Average Hourly Earnings in September rose by 0.4% MoM, down from 0.5% in the previous month but exceeding forecasts of 0.3%.
  • On a YoY basis, earnings per hour increased by 4% in the 12 months to September, surpassing estimates and improving on August’s figures of 3.8% and 3.9%.
  • Market participants have ruled out a 50 bps cut from the Fed. The odds of a 25 bps cut stand at 95%, with only a 5% chance of rates being held unchanged, according to the CME FedWatch Tool data.

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