Market Update – 5th September 2016 – U.S Jobs Numbers Disappoint, Equities & Aussie Dollar Rally

Stocks and commodities rallied Friday evening thanks to poor U.S jobs numbers which dampened expectations that the U.S Federal Reserve will return to a rate tightening cycle later this month.  However there are still strong divisions with one camp suggesting that a rate hike is close to a sure thing if the Federal Reserve are to have any credibility while the other camp think the jobs numbers just weren’t strong enough to warrant a return to more tightening monetary policy. I guess we’ll just have to wait until September 22nd to find out.

AUD/USD gained over 1% following the mediocre U.S jobs numbers but has since retraced most of those gains.

Not much data is released today but we do have Glenn Stevens final interest rate decision tomorrow afternoon before he hands over the reins to Philip Lowe on the 18th of this month. The market is expecting no change to interest rates so minutes from the meeting will be what investors and traders focus on tomorrow afternoon.


JPY – BOJ Kuroda Speaks at 12.30pm

GBP – Services PMI at 6.30pm


AUD/USD – 0.7568

AUD/GBP – 0.5692

AUD/EUR – 0.6781

AUD/NZD – 1.0375

AUD/JPY – 78.718

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

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