With bank holiday's across western markets yesterday we had to wait until lunchtime yesterday for Chinese CPI data to trigger volatility into trading, and with CPI outperforming expectation by ticking up to 3.6% trader encouraging buying of the Australian dollar. As the only traded point of the day US denominated pairs all rose in unison with the AUD hitting highs of 1.033 through the European session before US equity markets refocused on Fridays Non-farm payrolls data with Dow Jones index down 1.00% and the S&P down 1.14%.
With the print of 120,000 new jobs away for a consensus figure of 200,000 mixed in with bank holidays and major equity markets closed on Friday and Monday markets are still digesting what the number represents. The figure was especially disappointing seeing the last three months have exceeded 200,000 jobs. The Euro and Pound both shed between 15-20 pips through the US session but are still up on the currency markets open this week as many US based analysts call for a third round of Quantitative Easing, intern easing US dollar demand.
Local markets do have quite a lot of information to digest today with a fall on equities expected to match those from the US session. Locally we do have monthly ANZ Job Advertisements and NAB Business Confidence due out at 11.30am but we expect local markets to take more sway from Fed Chairman Bernanke speech at 9.15am and his view of the immediate health of the US economy in line with the disappointing jobs print from Friday.
At the time of writing the Australian dollar is buying 1.0308 USD.