As it had already happened with the publication of preliminary data of the US labor market, although the actual ones published during the past week have created havoc in the markets and among the currency pairs.
The important market movers this week were obviously the April data on the labor market in the US that have disappointed across the board expectations.
It was announced that the new jobs added to the US economy (Non Farm payrolls) were only 160.000 last month, compared with the result of March to +215.000 (revised then at 208.000 units). Analysts had previously expected that the NFP would show an addition of 200.000/202.000 jobs in April units.
The report also shows the unemployment rate stable at 5%, as expected, while the participation rate falls from 63% to 62.8%.
The average hourly wage marks a rise of 0.3%, as expected by analysts, but the result of the previous month was revised down to + 0.2%.
European stock markets have not taken very well these data, accelerating initially downward before recovering the losses. The reports on the US labor away definitively the possibility of a rise in US interest rates in June, which it is not bad news.
However, if you standardize data on the US labor market to other American economy projections we must feel worried. The recent quarter showed signs of a significant slowdown in the US and the specter of a recession in the country stars to going back in economists mind.
Even for Wall Street there was not a positive opening. Analyzing the futures on US lists on Friday the derivative on the Nasdaq was down of -0.46%, the Dow Jones of -0.4% and on the S & P 500 of -0.45%.
Also the Euro-Dollar, after the publication of US data, flew on the intraday high at $ 1.1477 only to reverse their current values equal to $ 1.1441.
The same employment data have also been published for Canada, where the variation in the level of employment in April amounted to -2,1K, down from the previous month to 40,6K.
The unemployment rate in Canada for the last month was 7.1%, steady compared with March. It also noted a slight decline in the participation rate in April, down from 65.9% to 65.8%.
Moving on from the front of the labor market to interest rate, it is important to known that the Reserve Bank of Australia has reduced the interest rate from 2% to 1.75% in the night between Monday and Tuesday.
The decision taken by the RBA, which was implemented in order to give new inspiration to the economy following the events of the world financial crisis, has had a direct effect on the local currency, the Australian dollar, which continued in a downward phase.
The AUD / USD (i.e. Aussie) lost a substantial 1.74% in just three hours, from an initial value of 0.7811 against the dollar, to $ 0.7675 (with a minimum of $ 0.7655). It was the major loss in a day from 2013.
After the slowdown in neighboring China (his trading partner) that went from an expanding economy to a domestic growth strategy, the general decline in the sector of commodities (gold in particular) has been the main point of weakness for the island. The Australian economy appears to be serene. Or, at least, it is no longer as it was before.