Average Hourly Earnings measures the change in the price businesses pay for labor, not including the agricultural sector.
Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.
The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
Private Nonfarm Payrolls measures the change in the number of total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals and farm employees.
The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers' Index (PMI) (also known as the ISM Services PMI ) rates the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The data is compiled from a survey of approximately 400 purchasing managers in the non-manufacturing sector. On the index, a level above 50 indicates expansion; below indicates contraction.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Analysis and Recommendation: ( close of Asian session )
AUD/USD was trading at 1.0712. The Aussie on solid economic strenght in Australia and comments by Prime Minister Gillard saying that the Australian dollar will remain relatively strong for years to come, driven by its new found "safe haven" status and as investors use it as a proxy currency for the Asian region.
The Prime Minster stated that the European crisis was of a different nature - one stemming from concern about sovereign risk and the need for eurozone governments to undertake "long-term fiscal repair".
As the USD lost strength, on economic data yesterday, investors sold greenbacks and looked for other safe haven currencies. The so-called risk currencies like Aussie and kiwi can be very well-supported. The duo hit 1.0756 in Asian trading up 0.27% and up from a session low of 1.0703 and off from a high of 1.0756.
Australia's trade surplus rose to 1.7 billion Australian dollars ($1.8 billion) in December, from A$1.3 billion in November. Forecasts had projected a trade surplus of A$1.2 billion in the month. Exports rose 2% to A$27.8 billion, while imports rose 1% to A$26.1 billion, the Australian Bureau of Statistics reported Thursday. The ABS also said that seasonally-adjusted housing approvals fell 1% in December, compared to a 10.1% rise in November. Economists had expected a 4% rise in dwelling approvals.
Source www.ibtimes.com.
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