The Australian employment change number was slightly better at 19.8k versus 15k expected
Unemployment has edged down to 5.5% from 5.6%
AUDUSD did bounce some 20 pips higher and was poised to benefit from any hint of US weakness. But with the China GDP coming in on consensus, whatever bullish sentiment the markets were positioned for an upside surprise after Zhou Xiaochuan’s comment earlier this week that the economy could grow 7 percent in the second half of the year should get priced out quickly. The GDP reading could weigh negatively on both mainland Stock and currency markets as traders may position for further weakness into year-end suspecting financial curbs will continue to have a negative impact on growth in China with GDP possibly topping.
USDCNH traders were caught short likely positioning for a more robust GDP print
The rest of the data is not terrible, but I suspect the markets will focus on a possible slower China growth narrative
Outside of regional concerns the Big dollar doing little more than running in circles awaiting the nomination of the next Fed Chair and headway on the contentious tax reform bill.
