Market Update – 10th October 2016 – Have Poor U.S Jobs Figures Killed Off A Rate Hike In December

The latest U.S jobs figures released Friday night came in well below estimates and according to some, may have been poor enough to kill off a rate hike in 2016. However there is another camp who still believe the U.S Federal Reserve will resume their rate tightening cycle with a rate hike in December. In any case it’s a line ball type of scenario and with AUD/USD holding just under 0.7600 you’d have to suggest the market isn’t really pricing in a rate hike from the Fed. Only time will tell and unfortunately I don’t have a crystal ball!

We have a pretty quiet week ahead in terms of economic data with only Chinese trade balance figures due Thursday while U.S retail sales and PPI are due Friday night. Again this week the focus will be on the U.S data and in particular these retail sales figures – the Fed will be looking for a strong uptick in retail sales which has really faltered over the past 2 months.


No data, Bank holidays in the U.S, Japan and Canada (please bear this in mind with your payments)


AUD/USD – 0.7581

AUD/GBP – 0.6091

AUD/EUR – 0.6762

AUD/NZD – 1.0581

AUD/JPY – 78.11

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

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Phone Patrick – +61 03 9099 8459




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