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Trending Economic: Afternoon Brief [15 October 15]

AUDUSD strengthened post the unemployment rate (Sep) which came in at 6.2%, below an expected 6.3%. There was no change in the unemployment rate from August, but the participation rate fell to 64.9% from 65.0%, also the total number of employed also fell by 5K compared to an expected rise of 5K. Also bank lending in China has surged, increasing to CNY 1.05 trillion in September, well above the consensus at CNY 900 billion. The most important data out from U.S. today was CPI, which has come in at 0%, slightly above an expected -0.1%, core inflation has seen a rise to 1.9%. The Fed speakers Bullard and Dudley are due to speak at 1430GMT today. 

Nowotny repeated the need for more ECB action today.  Considering that he is perceived by the market on the hawkish side, further downside in the EUR is seen. However, we will wait for U.S CPI to come in before forming opinions on EURUSD. Elsewhere, Sweden unemployment rate grew to 6.7% compared to an expected no change at 6.6%. This has pushed SEK lower and we expect further downside for SEK amid lack of data ahead of Riksbank rate decision on Wednesday 28 October.