Australia is reportedly set to issue their monthly report covering the nation’s unemployment figures for the month of August this Thursday, 12 September 2013. At this time, experts are yet to express a conclusive opinion regarding the direction of employment.
Analysts note that the month of July witnessed a continued drop in the number of jobs created, further widening the country’s unemployment situation. Moreover, with a weakened currency and a failure to boost up their recovery efforts, Australia is likely facing another month of job loss and stagnation for the month of August. As the employment figures remain negative, it is likely to have a negative effect on the economy as consumers worried over their job prospects are likely to spend less, thus lowering the levels of commerce.
Traders are advised to continue with caution in trading the Aussie as it will likely remain low in its pairings against rival currencies.
UK Housing Prices Rose in August
It was reported on 10 September 2013 that the housing prices in the United Kingdom continued to rise during the month of August 2013. Analysts point to the gains in the housing market as a positive sign of growth for the British economy that by many accounts is continuing to make significant strides in its recovery efforts.
It should be noted that many experts have pointed to not only the improvement in the economic outlook for the UK as being behind the rise in the market, but government measures as well are believed to have played a part in helping out the situation. By some estimates, the prices have returned to levels not seen since 2002, leading many observers to mark this as a sign of the economic success, with many of those helping in pushing up prices being new home owners who have risen to the point that buying a house has become possible in the current situation.
Analysts point to rising housing prices as the sign of a strong recovery as it is both a durable good that consumers will only move to purchase when they believe that both their short and long term economic situations will allow the massive expenditure and commitment. As such, many experts can use these figures as a mark of consumer confidence. Moreover, as demand rises for housing, the need for building increases, creating jobs for construction sector, further improving the economy.
Traders are advised that the pound will likely rise as the economy continues to make gains in the coming weeks. That said, investors are still advised to proceed with caution as shifts may still appear in the market, possibly adding unforeseen volatility.
Loonie Hits High as Building Rises
The Canadian dollar was reported on 10 September 2013 to have made a surprising leap to a three week high against the neighboring USD. This sudden gain is said to have shocked many experts who were unprepared for the boom in the loonie’s demand in trading.
Analysts trace the success of the loonie back to a rise in building permits for construction in Canada. According to experts, this boom in the demand for new construction projects is reflective of an increasingly sunny outlook for the Canadian economy that has been hard hit by market fluctuations in recent months, especially in comparison with its southern neighbor. As has been previously noted, besides the positive note that consumer confidence is likely up by the willingness to invest in new building, the expansion of construction will likely add much needed jobs, helping to add more spending in the economy.
It should be noted that this good news comes against the backdrop of fluctuating oil prices, the primary export of Canada, and a major factor in the health of the economy. With concern over the potential American intervention in war torn Syria, both the US dollar and the price of crude have gone through different peaks and valleys as the situation there develops.
Traders are advised to proceed with caution as the loonie will likely remain in flux, despite this current boost from the building permits. Shifting oil prices will probably contribute to additional volatility in the market, thus possibly bringing the loonie along with it.