Here are the Top 5 Forex Developments for the trading week between 11/03/14 and 11/07/14:
Number One: US NFP Report
Today forex traders received the NFP report out of the US for the month of October. The US economy added 214,000 jobs which missed estimates for an increase of 235,000. The unemployment rate decreased to 5.8%. The average hourly workweek remained unchanged at 34.6 hours and average hourly earnings rose 2.0% coming in short of estimates. The labor force participation rate remained at very depressed levels and was reported at 62.8%. The US Dollar sold off after the overall NFP report disappointed.
Number Two: Canadian Employment Report
AT the same time the NFP report was published the Canadian employment report was released. Unlike its US counterpart the Canadian report came in much better than expected and showed an increase of 43,100 jobs in October. Economists expected a contraction of 5,000. The unemployment rate dropped to 6.5%. Full time jobs rose by 26,500 while part time jobs rose 16,500. The Canadian Dollar rallied and is likely to have more room to move higher.
Number Three: Australian Employment Report
The Australian economy is powering ahead on the labor front with healthy job gains of 24,100 in October which beat estimates for an increase of 20,000 jobs. The unemployment rate remained unchanged at 6.2%. Full time employment rose 33,400 while part time employment contracted by 9,400. The labor force participation rate rose to 64.6%. The Australian Dollar shed some of its bearish momentum and rallied to close this week’s trading session.
Number Four: New Zealand Employment Data
The unemployment rate for the third-quarter decreased to 5.4% while the third-quarter net employment change was reported at 0.8% quarterly for an annualized figure of 3.2%. This beat estimates for levels of 5.5%, 0.6% and 3.0% respectively. Average hourly earnings rose 1.4% beating estimates which called for an increase of 1.1%. The labor force participation rate as well as labor costs remained unchanged at 69.0% and 0.5% respectively. Forex traders should seek solid entry opportunities for long positions in the New Zealand Dollar.
Number Five: Chinese Manufacturing/Non-Manufacturing Index
The HSBC Manufacturing Index remained unchanged at 50.4, barely avoiding contraction, while the non-manufacturing index decreased to 53.8. The Chinese economy has been weakening which impacts commodity currencies such as the Canadian Dollar, the Australian Dollar and the New Zealand Dollar. This has countered the positive employment reports to a certain degree.