This week’s big data release was the August labour force report, where lockdowns continued to distort some of the headline data. This produced the disconcerting combination of another fall in the unemployment rate – this time to 4.5 per cent, its lowest rate since late 2008 – alongside a drop in employment of more than 146,000 people and a 3.7 per cent slump in hours worked. The explanation for this peculiar blend of outcomes was another big decline in the participation rate as the size of the Australian labour force shrank for a second consecutive month.
Earlier in the Day:
It’s was a relatively busy start to the Day on the economic calendar this morning. The Aussie Dollar was in action, with economic data from the China also in focus.
For the Aussie Dollar
In February, the Westpac Consumer Sentiment Index rose by 1.9% to 109.1. In January, the index had fallen by 4.5% to 107.0. Economists had forecast a 1.0% increase.
Sentiment remained strong in February, which is key to a more positive outlook on consumer spending.
According to the latest Westpac Report,
The upside in February came following January’s pullback from a 10-year high in December.
Looking at the sub-indexes:
Australian Dollar Outlook: AUD/USD Unfazed by Falling Westpac Confidence 2021-01-20 00:00:00 Thomas Westwater, Analyst
Australian Dollar, AUD/USD, Covid, Westpac Consumer Confidence – Talking Points
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Australia’s Westpac Consumer Confidence gauge fell 4.5% for January
AUD/USD up on USD weakness, Symmetrical Triangle taking shape
The Nasdaq Composite led the charge higher on Tuesday with a 1.53% gain, as Wall Street resumed trading after the extended holiday weekend. All major US indexes closed in the green, with the S&P 500, Dow Jones Industrial Average, and Russell 2000 rising by 0.81%, 0.38%, and 1.32%, respectively. The risk-on session was prompted by strong earnings results, stimulus hopes, and vaccination distribution efforts. Gold moved above the 1840 handle, bolstered by a weak US Dollar.