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%.
Practise trading Australian technology stocks with an IG demo account now
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
