Market Update – 9th March 2017 – Aussie On The Back Foot As Commodity Market Sours And U.S Jobs Surge

Equities, commodities and the Aussie dollar are all lower this morning following a global revaluing of ‘risk’ assets which occurs when negative sentiment creeps into markets. The Aussie which has long been associated with the term ‘risk’ asset (as it generally rises when things are good and falls quite dramatically when things turn sour) has fallen around half 1% vs. the Greenback overnight while AUD/EUR and AUD/GBP are down similar amounts.

The U.S dollar on the other hand is performing quite well thanks to a booming preliminary jobs number released overnight which bodes well for the official figure due out tomorrow evening. ADP employment figures well and truly beat estimates with around 300K new jobs created, surpassing the 184K estimate by a whopping 100K+; the previous months figure was also revised higher to 261K new jobs. The data in my opinion all but guarantees we’ll see a rate hike from the U.S federal reserve next week, particularly if these same jobs numbers flow through to the official non-farm employment figures tomorrow night. What does this mean for the Aussie? Likely lower, and with commodities also falling at the moment, could be considerably lower by this time next week.

DATA RELEASES TODAY:

CNY – CPI at 12.30pm

EUR – Minimum Bid Rate (interest rates) at 11.45pm

AUD EXCHANGE RATES:

AUD/USD – 0.7480

AUD/GBP – 0.6140

AUD/EUR – 0.7094

AUD/NZD – 1.0860

AUD/JPY – 85.687