Australia, Canada and the U.S. will release important employment indicators this week. Australia;s employment is expected flat after the surprising growth last month of 42,000 when the forecast called for 12,100. Analysts have called the job acceleration unsustainable until there is growth again in the mining sector.
Canada also impressed last month with 58,900 new jobs when the forecast was for only 10,200. The expectation this week is for a contraction of 4,500 jobs in the lower end of the range that could go up as much as 20,000 lost positions. The Canadian unemployment rate is expected to rise to 6.9 percent and pressure the Bank of Canada for a rate cut before the end of the year as the economy is falling further behind the growth target of 1.9 percent.
U.S. unemployment claims will be released on Thursday, July 9. Last week the claims rose to 281,000 but the fact that the figures have remained below 300,000 since March point to a strong employment component that is the pillar of the Federal Reserve’s interest rate hike plans this year. Unemployment claims are forecasted to come in at 277,000 on this week’s release.
Employment events to watch this week:
Wednesday, July 8
9:30pm AUD Employment Change
Thursday, July 9
8:30am USD Unemployment Claims
Friday, July 10
8:30am CAD Employment Change
*All times EDT
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar