Derrick Hileman

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Australian Change in Employment

This figure shows the change in the number of people employed in Australia from the previous month. Therefore this report shows how many new jobs were created or lost during this period. This report is quite significant in that it indicates future spending and growth since having a job naturally affects the way consumers spend. If there is a rise in employment it could be that the RBA will increase interest rates to counter possible inflation.

The AUD/USD tends to move according to these results but it is further magnified when it corresponds with the unemployment rate. If these two figures do not correspond, the Aussie tends to react more to the jobless rate.

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Weekly Outlook 3rd-7th December

Upcoming events and announcements for this week! Keep up to date with the SmartTradeFX blog to receive all the fundamental news that you need.

Monday 3rd - The US ISM Manufacturing PMI will be released Monday. This figure is one of the biggest market moving releases. This figure rose in October unexpectedly and a similar figure is expected for this month.

Tuesday 4th - With the Reserve Bank of Australia’s rate decision coming up this Tuesday we can expect the AUD/USD to be affected regardless of the outcome, after the Bank keeping their current cash rate last month. We are expecting another cut but without a full consensus as of yet.

Wednesday 5th - Wednesday will bring news of Australia’s GDP as well as the Reserve Bank of New Zealand’s rate decision, with no change expected.

Thursday 6th - Australia’s employment data increased last month and we are expected to see this figure increase on...

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Euro high versus dollar with strong German data

The German ZEW economic sentiment index jumped to 6.9, much higher than the -12 that analysts expected. This figure shows that investors are hopeful that Germany won’t enter a recession.

The euro suffered at the beginning of the week with news of the Italian PM’s resignation but the market is proving to be resilient. The euro rose as a result of the positive German data for the second day running on Tuesday. Further gains are expected to be made against the dollar if the Fed will add more aggressive easing.

The Fed will announce today its decision on whether it will replace its “Operation Twist” program with another bond-buying plan. If the Fed does indeed announce this, it’s going to be good news for the euro as there will be a negative impact on the dollar since treasury purchases will depress yields.

The Canadian and NZ dollar also rose against the US dollar with speculation for more...

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JPY Tertiary Industry, GDP and the Yen’s outlook

This figure measures the monthly change in output from Japan’s service sector. Not included in this report is industrial manufacturing and since Japan is mainly export-based, this figure will give us a good indication as to the well-being of the domestic service sector. This includes health care, financial services, retail, wholesale, real estate and leisure activities, etc.

This figure, to be released later today, can move markets upon its release. We are also expecting to see Japan’s GDP release at the same time, and if figures come out beyond expectations we tend to see a move in the markets.

The Yen strengthened against the US Dollar with the pair moving to a monthly low of 79.06. It is said that this week the Yen is set to appreciate even further as interest rates in Japan are on the increase.

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