Key Economic Updates: Australian Jobs Report and China ‘Stimulus’ Briefing

The global financial markets were abuzz with activity as key economic data and policy announcements from Australia and China made waves on Thursday.

The day started off with disappointing news from Japan, as data showed poor trader performance in September. Exports recorded their first drop in ten months, falling to major markets such as China, the EU, and the US. This led to a dip in the USD/JPY exchange rate, hitting lows under 149.30 briefly.

However, the mood quickly shifted with the release of Australia’s blockbuster jobs report. Employment numbers surprised on the upside in September, with the unemployment rate falling and participation rising to a new record high. This strong jobs market is expected to ease concerns for the Reserve Bank of Australia, which is likely to maintain its high cash rate to combat inflation.

The positive news from Australia led to a jump in the AUD/USD exchange rate, reaching highs above 0.6710 briefly. The momentum was further boosted by announcements from China’s ‘housing’ stimulus briefing. The briefing outlined plans to expand the “white list” of property projects to support, with a significant increase in support to 4 trillion yuan ($562bn).

The People’s Bank of China also announced measures to support the property sector, including allowing policy and commercial banks to issue loans for the purchase of existing land. Despite the initial excitement, both property sector stocks and the AUD/USD exchange rate soon reversed course, with the latter dropping to around 0.6685.

Overall, the day was marked by a mix of positive and negative developments in the global economy, highlighting the interconnected nature of financial markets and the importance of staying informed on key economic indicators and policy decisions.