Investors eye Aussie jobs data, digest Fed minutes
Aug 17 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever An insight into health of Australia's labor market is the main focal point for markets in Asia on Thursday, with an otherwise light regional macro and corporate calendar allowing investors to digest the latest incoming signals from the United States.
Wall Street ended in the red on Wednesday, but stocks initially pared losses after minutes from the Federal Reserve's July meeting were published.
There is always something for everyone in these releases, but investors' initial take tilted towards the dovish side.
Will Asia's interpretation be the same?
The most immediate issue for markets is whether the Fed raises rates next month by 75 basis points for a third straight meeting, or by 50 bps. At the U.S. close on Wednesday, the CME's "Fedwatch" tool showed around a 60% chance of 50 bps, and 40% chance of 75 bps.
That was little changed from 24 hours earlier.
Meanwhile, investors await Australia's employment figures for July. They are expected to show the unemployment rate holding steady at 3.5% and a ninth straight month of job creation.
The Aussie dollar could be poised for a decent bounce if the numbers beat forecasts. It has fallen 2.5% this week, following a 3% surge the week before. It is on track for its biggest decline since January, and a soft jobs report could easily push it towards its worst week in a year.
China is scheduled to release July's foreign direct investment data this week, so that could come on Thursday.
Later in the U.S. session on Thursday, investors may get some clarity on the Fed minutes from Kansas City and Minneapolis Fed presidents Esther George and Neel Kashkari, who are scheduled to speak at separate events.
Key developments that should provide more direction to markets on Thursday:
Australia employment data (July)
Fed's George and Kashkari speak
Australian dollar - weekly change Link
Reporting by Jamie McGeever in Orlando, Fla.
Editing by Matthew Lewis
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.