Amana Capital Market News
Mexico's unemployment rate remained unchanged at 3.30% during the month of September, while on a non-seasonally adjusted basis, the jobless rate rose to 3.60%, meeting consensus estimates, higher than the previous 3.50%.
In this week's Cryptocurrency trading outlook, Bitcoin (BTC) has started to consolidate below last Friday's high of $5851. We see two scenarios going forward: either the price will break the all-time high of $5851, propelling the currency higher or a test of the old all-time high of 4973 could be in play. We also explore Ethereum (BTH), which tried to initiate a bullish trend on October 13, but when the currency tested the breakout level of $314, bullish traders struggled to defend the level. For more on this watch this week's update.
- AUDUSD hovered around 0.7840 handle this week
- Better-than0expected September employment report manages to push AUD little
- US dollar index hovered around 93.00 handle this week
- Greenback remained soft on Thurs as investors awaited updates on the tiff between Spain and Catalonia
The AUDUSD hovered around 0.7840 handle this week as US dollar traded range bound following Federal Reserve’s board members comment on the interest rate hike amid cues from geopolitical tensions. However, the Australian dollar managed gained more than 0.20% on Thursday after employment report came better-than-expected for September.
Australia’s employment change rose to 24K in September, according to the latest figures released by the Australian Bureau of Statistics. Full-time employment rose by around 271K since September 2016, making up for a majority of the 335K net rise in total employment over the period. However, the country’s unemployment rate remained steady at 5.5% in September, registering the lowest rate in about four years.
In addition, the number of unemployed also declined by 2.2K compared to that in August, sliding for the seventh straight month in a row. On a seasonally adjusted basis, monthly hours worked in all jobs increased by 11.2 million hours in September 2017 to 1,718.2 million hours, as compared to the same period last. Meanwhile, the labor force participation rate remained steady at 65.2% in September.
On the flip side of the coin, the US dollar index, which measures the 6 major currencies against the greenback, hovered around 93 handle this week. For now, the dollar has recovered after falling to the lowest level since January 2015 as the market seems optimistic about the December rate hike. However, rising geopolitical tensions dragged down the greenback against major currencies. The greenback softened vs its peers on Thursday as investors were keen to watch the advancement of the ongoing crisis between Spain and Catalonia over the independence referendum for the former’s richer northeastern region.
Inflation data in focus next week
Australia’s consumer price-led inflation index for the third quarter of this year is eagerly awaited next week (October 25) and it is expected to register 0.8% q/q, up from 0.2% q/q in the second quarter. Also, on a y/y basis, it is seen to come in a tad higher at 2.0%, from prior 1.9%.