The Australian job figures for the month of December 2013 are expected to be issued tomorrow Thursday 16 January 2014. The two articles addressing these statistics are the Employment Change and Unemployment Rate reports. At this time, many experts believe that while there will likely have been some jobs added during December, the number most probably will be lower than those reported for November 2013. That said, they are not expecting to see any changes to the overall Unemployment Rate.
Analysts note that the Aussie has faced recent difficulty as traders have returned to using it as a preferred currency for shorting against its rivals. Moreover, the issue of ensuring growth has been difficult for the economy as it attempts to spur its job market to bring on new hires.
In addition, analysts believe that there is an increased probability that the experts are correct in their assessment of lower job figures for December 2013. As many new hires were brought on in November for the Christmas shopping season, there was less of a need to bring in more the following month. This trend can be seen in the dip that occurred in the US, as witnessed by their last employment report. It should be noted that the number added during November came in above average for the rate over the past few months.
While there have been gains reported over the past week, analysts assess that the Aussie will likely remain volatile in the coming days following the release of this report.
US and Eurozone to Issue CPI Reports
The Consumer Price Indexes for the United States and Eurozone during the month of December 2013 are due to be released tomorrow 16 January 2014. While experts are yet to state their expectations for the Eurozone, they have expressed their belief that there could be a rise in the rate for the US.
As has been noted in previous reports, the Consumer Price Index report is an important indicator of inflation in the economy. As the CPI measures the cost of a set basket of basic goods, it is sensitive to shifts in prices for consumers. As prices of these items rise or fall, it can affect the spending abilities of the public and therefore influence economic activity in that country or region.
It should be noted that the American CPI reports are comprised of both the general report and the CPI excluding Food and Energy. Readers are reminded that economists often prefer to look to this second report as it is less susceptible to sharp changes in the market on these volatile items. In particular, the price of fuel has shifted considerably in recent weeks over speculation on the supply levels of oil products in the US. With this in mind, the experts have stated that they do not foresee a shift in the figures excluding Food and Energy.
Traders are advised to watch for additional shifts in the trading of the dollar in the coming days after it broke its decline yesterday.
Gold Prices Fall for Second Day
It was reported on Wednesday 15 January 2014 that the precious metal gold had suffered a second day of losses. The drop comes after a considerable rally that emerged at the start of the new year as investors began returning to gold.
Analysts note that many investors have expressed concerns that prices could drop further should the US Federal Reserve decide to continue their tapering efforts against the stimulus package that was put in place following the start of the recession in 2008. In December 2013, the Federal Open Market Committee of the US Federal Reserve voted to reduce the $85 billion quantitative easing program down by $10 billion. The monetary policy board arrived at their decision following assessment that employment had strengthened and that the American economy could withstand their reduced involvement. This move to lower the bond purchases by the Fed sparked investors who had fled to haven assets like gold to return to the dollar, thus raising the demand for the USD and suppressing the price of the precious metal.
Analysts assess that recent hawkish statements coming out of the Federal Reserve are likely to continue to scare investors in the coming weeks and months. That said, the gold market is only now rebounding from its worst year since 1981. As such, investors are advised to watch for high levels of volatility over gold as the Fed continues to plan their next moves.