ASX 200: AUD falls, jobs data declines & tech stocks bounce this week
A jobs data miss, a mini tech stock bounce-back and a weaker AUD all cap-off an interesting week for the Australian market.
It was an okay week for the blue-chip benchmark, with the ASX 200 rising around 40 points – or 0.6% – during the last five trading sessions.
Financial stocks proved to be a mixed bag, while some of Australia’s key tech stocks bounced after a period of protracted weakness.
Jobs data came in well below expectations this week and the Australian dollar fell in response.
With all this in mind, we take a look at how all these factors fit into the broader picture of the Australian market below.
Australian dollar falls: jobs data comes in weak
What a miss.
The Australian Bureau of Statistics (ABS) yesterday revealed that overall employment decreased by 19,000 in October. Previous expectations were for an increase (yes, an increase) of 16,000 jobs during the month.
The Australian dollar (AUD/USD) fell by 0.5% in response to this miss. In saying that, the AUD rebounded slightly today, trading 0.18% higher by 12:09 AEST.
Adding to this, the ABS said ‘Australia's trend unemployment rate remained steady at 5.3 per cent in October 2019.’
Commenting on the consequences of this ABS data, IG’s Market Analyst, Kyle Rodda said:
‘The clear signs of increasing slack in the labour market has stoked expectations the RBA will be forced to cut interest rates sooner than previously thought.'
As a result of this and speaking to the current expectations around interest rates, Mr Rodda continued by saying that:
‘According to interest rate markets, the next rate cut is more than likely to come in February.’
Appen, Altium and WiseTech share prices all rise
Tech stocks have been hammered in recent months, with many market commentators suggesting a rotation from growth to value stocks may be upon us. Yet as Kyle Rodda also noted this morning, yesterday’s ASX 200 rally was underpinned by gains in ‘yield sensitive growth stocks and the defensive sectors.’
Ultimately, this has now capped off a bullish week for tech stocks. In the last five trading sessions the share prices of the following key tech stock have all risen: Altium (ASX: ALU) +3.76%, WiseTech (ASX: WTC) +5.37%, Appen (ASX: APX) +11.85% and Nearmap (ASX: NEA) +14%.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets