Labor Market Data Puts the Loonie and the Greenback in Focus Later Today

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Aussie Dollar was in action this morning. On the monetary policy front, the markets also responded further to the overnight FOMC meeting minutes.

For the Aussie Dollar

Employment was in focus this morning.

In July, the unemployment rate fell from 4.9% to 4.6%. Economists had forecast a rise to 5.0%. While positive, it was a fall in the participation rate that led to the decline.

According to the ABS,

• The national participation rate fell by 0.2 percentage points to 66.0%.
• In July, the underemployment rate increased for a 2^nd consecutive month, up 0.4 percentage points to 8.3%.
• Employment increased by just 2,200, with the number of employed up 161,600 from March 2020.
• Full-time employment fell by 4,200, however, while part-time employment increased by 6,400.
• Large changes in NSW and Victoria labor markets influenced the figures for July.

The Aussie Dollar moved from $0.72231 to $0.72217 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.29% to $0.7211.

Elsewhere

At the time of writing, the Japanese Yen was down 0.36% to ¥110.610 against the U.S Dollar, with the Kiwi Dollar down by 0.51 to $0.6852.

The Day Ahead

For the EUR

It’s a particularly quiet day ahead on the economic data front. There are no material stats due out of the Eurozone to provide the EUR with direction.

The lack of stats will leave the EUR in the hands of market risk sentiment and COVID-19 news.

At the time of writing, the EUR was down by 0.26% to $1.1681.

For the Pound

It’s also a particularly quiet day ahead on the economic calendar. With no material stats to provide the Pound with direction, market risk sentiment will remain the key driver.

At the time of writing, the Pound was down by 0.25% to $1.3721.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. Philly FED Manufacturing numbers for August are due out along with the all-important weekly jobless claim figures.

Expect the jobless claim figures to be key. With the FED looking to begin tapering, an unexpected rise in claims could hit the pause button.

At the time of writing, the U.S Dollar Spot Index was up by 0.25% to 93.366.

For the Loonie

It’s another relatively quiet day on the economic calendar. ADP Employment Change figures for July are due out later today.

With little else for the markets to consider, expect the numbers to influence.

At the time of writing, the Loonie was down by 0.23% to C$1.2687 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.