Little Joy On Asian Markets Ahead of US Employment Data

Little Joy On Asian Markets Ahead of US Employment Data

By Tim Waterer (Senior Trader, CMC Markets)

There was little joy on the Australian market today with a negative offshore lead combined with underwhelming domestic GDP contributing to send the ASX200 sharply lower. A negative performance from commodity prices overnight did little to help the performance of the resource stocks on our market today with the blue chip miners all well in the red while elsewhere the financials were also giving significant ground. In fact, across most Asian markets today the inclination seemed to be to sell ahead of the upcoming key US employment data.

The Australian Dollar initially dipped on the lower than forecast GDP figures, however the currency was able to shake off the initial fall by moving higher in afternoon trade. The AUD had been under some pressure again entering the day following a stronger USD performance overnight and the GDP result, while not dismal, was enough to send the currency to the lows of the day just above the $US0.96 level. However the recovery in the gold price back above US$1400 assisted the commodity-linked AUD. Overall today the currency kept to a tight range during the local session, however moves of greater significance will likely be reserved for the offshore session given the upcoming array of international data.

The market remains acutely tuned to US indicators which may sway the Fed one way or the other regarding the length of economic stimulus, with the APD private employment report likely to be viewed as a precursor to the broader NFP report on Friday.

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