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Asia Recap: RBNZ more dovish, largest Aus jobs gain since 1978

FXStreet (Bali) - The Australian Dollar ended the Asian session as the best performer, while its neighboring currency, the Kiwi, was the main laggard.

AUD/USD managed to briefly regain the 0.92 handle only to consolidate right below heading into London. NZD/USD continues to pressure into lower territory, currenty trading hands near its cheapest in 7 months at 0.8180. USDJPY saw consolidation around 106.75/80. EUR/USD failed to regain the resistance 1.2920, while GBP/USD hang onto its most recent gains by steadying around 1.62 whole number.

There were two main events moving the Asian markets today. Firstly, as widely anticpated, the RBNZ decided kept rates unchanged at 3.5%, following four consecutive months of hikes, noting that it is prudent to undertake a period of monitoring and assessment before considering further policy adjustment, although also noting that further policy tightening will be necessary, with the market now expecting late Q1/early Q2 2015 for further OCR rises.

The other events, which came as a shock, with some analysts even calling the number 'a sample error', was the astonishingly high Australian employment report, coming at an outrageous 112k vs 15k expect, that is, an almost 8 times positive deviation, and by far the largest monthly rise from this release since Feb 1978. The jobless rate also improved at 6.1% vs 6.3% exp and +6.4% last. Fulltime employment jobs created stood at 14,300 vs 14,500 last, with part time jobs at 97,700 vs -14,800. The participation rate was 65.2% vs 64.8% exp and 64.8% last.

In other fundamental data, the UK RICS House Price Balance came at 40% vs 47% exp. In Australia, the Melbourne Institute Survey of Consumer Inflationary Expectations was 3.5% vs +3.1% last. In Japan, Q3 Business Sentiment Index released two components. The BSI All Industry came at 11.1 q/q vs -14.6 last, while the BSI Large Manufacturing was 12.7 q/q vs -13.9 last, some great recoveries there. In China, China Consumer Price Index (MoM) registered at 0.2%, below expectations (0.4%) in August, with the (YoY) also below forecasts (2.2%) at 2%, while the Producer Price Index (YoY) came in at -1.2%, below expectations (-1.1%) in August.

Main headlines in Asia

RBNZ: Further tightening will be necessary

NZD/USD trips stops below 0.82 after RBNZ

RBNZ: Market projecting next hike around April 2015

RBNZ: inflationary pressure less than anticipated

RBNZ: Guidance a dovish surprise - Westpac

RBZN Wheeler: Neutral OCR may have declined to 4.5%

Tone of RBNZ slightly more dovish than expected - Nomura

United Kingdom RICS Housing Price Balance came in at 40%, below expectations (47%) in August

Japan BSI Large Manufacturing (QoQ) up to 12.7 in 3Q from previous -13.9

Japan Foreign investment in Japan stocks: ¥187.9B (September 5) vs ¥-110.7B

Japan Foreign bond investment: ¥763.6B (September 5) vs ¥503.7B

Australia Consumer Inflation Expectation increased to 3.5% in August from previous 3.1%

Obama: US will allow 'no safe haven' to militant groups

China Producer Price Index (YoY) came in at -1.2%, below expectations (-1.1%) in August

China Consumer Price Index (MoM) registered at 0.2%, below expectations (0.4%) in August

China Consumer Price Index (YoY) below forecasts (2.2%) in August: Actual (2%)

Australia's jobs soars by 121,000 in August!

China M2 Money Supply (YoY) came in at 12.8%, below expectations (13.4%) in August

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