The reports detailing the jobs numbers for the month of July in Canada are set to be released tomorrow 9 August 2013. The two reports will cover the current unemployment rate as well as showing how many jobs were added over the last last period measured.
Currently experts believe that the unemployment rate will likely remain constant despite their additional assessment that the country will probably add some small jobs, changing direction from the previous month when they were still experiencing a loss.
Analysts do not expect these reports to significantly influence the status of the CAD in trading, as it is unlikely to show any serious shifts. Moreover, the loonie has been hit from low oil prices over the past month. That said, investors are still advised to proceed with caution in approaching the CAD in its pairings with rival currencies.
Aussie on the Rise as China Stabilizes
After weeks of suffering significant losses, the Aussie appears to have staged a significant if not temporary comeback in its trading against the US dollar. As of today 9 August 2013, the Aussie was reported to have maintained its four-day advance against the USD.
Analysts point to increased imports into China and hedged bets by traders that Australia’s Reserve Bank will likely make cuts to the benchmark interest rates as the key drivers behind the AUD’s success. Analysts also note that there has been strong Japanese investment in Australian bonds, helping to boost confidence in the Aussie economy.
The news comes on the back of a stabilization in China where a credit crunch had many investors worried that the massive economy would suffer a significant slowdown that would affect many of the economies with which it is intimately intertwined, with Australia being among those on this list. It would appear at this time that fears of a disastrous decline have been abated with the cuts to imports having plateaued for the time being.
Analyst advise continued caution in moving forward on the Aussie despite its recent rally. It should be noted that the employment figures which were released earlier this week pointed to the fact that jobs were cut from the economy, potentially scaring investors. Moreover, there is a strong likelihood that traders may return to shorting the Aussie, causing volatility in the market.
China Sales Gives Boost to Oil Market
In a continuation of the various fluctuations in the West Texas Intermediate, it was reported today 9 August 2013 that sales of crude rose due to a record round of purchasing out of China in the month of July. The news comes as reports released this week pointed to a drop in the the supplies of crude oil, despite a rise in the amount of gasoline available to the market. It should be noted that while stockpiles of crude were expected to fall, the drop was not as sharp as many had previously expected.
Analysts believe that the record breaking sales of fuel to China will likely help to keep the price of crude from dropping too drastically, hopefully not causing great distress in the market. That said, investors are advised caution in trading in oil due to the significant fluctuations in the market. Analysts will continue to follow the situation closely and will report on important changes to the market conditions.