The Australians are expected to release their numbers on the state of employment on Thursday 7 November 2013. At this time, many experts believe that while the report will show an increase in the number of jobs added to the workforce, the actual rate of unemployment may in fact end up higher than that of the previous month.
Analysts note that as consumer spending has increased during the last reported period, it will likely mean that employers will be able to bring in more workers into the economy. That said, the recent statement by Reserve Bank Governor Glenn Stevens that the Aussie is ?uncomfortably high? has hurt the currency in its trading against its competitors. This drop follows nearly three months of increases against others, and may be an attempt by Stevens to rein in undesired growth that may threaten the economy.
Traders are advised to watch for some minor volatility in the Aussie?s trading over the course of the coming week.
CAD Loses on Falling Crude Prices
According to reports on 5 November 2013, the Canadian dollar appeared to have suffered losses against the majority of its rival currencies in trading. Analysts believe that the main cause behind the weakening of the currency can be traced to the recent drop in value for crude.
Readers are reminded that crude represents Canada?s largest export, thus linking the price of the valuable commodity to that of the national currency. As has been reported here in recent days, due in large part to the sufficient stockpiles in the American fuel reserves for the winter months, the price of crude has fallen with the lack of demand.
Analysts note that despite the troubles brought on by the crude prices, the loonie is far from falling out. Housing prices are reported to be on the rise and consumer confidence is said to have remained high.
Traders are advised to watch for further fluctuations on the CAD as the nation?s economy adjusts to the new crude prices.
FOMC May Decide to Continue Stimulus
It was reported on 5 November 2013 that three officials from the Federal Reserve who sit on the Federal Open Market Committee believe that the monetary body may need to further extend its stimulus activities in order to reach their pre-stated goals.
The statements came from three Fed governors in a series of interviews and speeches that pointed to their goal of reaching 2% inflation and improving the employment situation before they will be prepared to step away from the $85 billion quantitative easing measures. The officials noted that they viewed these two metrics and the stimulus as important factors in helping to spur growth in the economy. In the past, members of the FOMC board have cited the jobs numbers as a crucial measuring point in their planning of potential cuts to the stimulus.
Analysts believe that these statements and others like them from other officials may lead to a breaking down of confidence by investors in the US dollar. It should be noted that in the past when Federal Reserve Chairman Ben S. Bernake and other officials had made insinuations that they may have been inclined to reduce the Fed?s bond purchasing program, investors had taken them as signs that the USD was on the path to recovery and began to return to the dollar as a highly valued asset.
As such, traders are advised to look for potential fluctuations on USD in the market in its trading against other currencies. Analysts note that as of the writing of this report in the lead up to the US ISM report, the dollar has faced difficulty in trading that may last through to the end of the week.