The greenback remained under against its G4 peers due to selloff in global equities together with falling us dropshippers Treasury yields and downbeat U.S. ADP employment dataas. The Dow opened lower after U.S. markets were closed on Wednesday and tumbled 780 points but then staged a late rally on report Fed may pause hikes.
Versus the Japanese yen, dollar initially fell from 113.20 in Australia and 112.58 in Asia on selling in Asian equities together with renewed trade concern between U.S-China after top executive of Huawei was arrested in Canada and despite rebounding to 113.15 at European open, price met renewed selling chinese wholesale and intra-day fall accelerated at New York open and later tumbled to a 1-month low of 112.24 due to selloff in U.S. stock markets as well as U.S. Treasury yields, however, a late rally in the Dow prompted short covering and the pair recovered to 112.75.
U.S. stocks pared intra-day steep losses and ended the day well off their session lows after the Wall Street Journal reported Fed is considering whether to signal a wait-and-see approach to rate hikes at its upcoming meeting this month. The report also said Fed officials do not know what their next move on rates will be after December.
U.S. private employers added 179,000 jobs in November, below economists' expectations, a report by a payrolls processor ADP showed on Thursday. Economists had expected the ADP nonfarm payrolls report to show a gain of 195,000 jobs after adding 225,000 jobs in the previous month.
Reuters reported China's embassy in Canada criticised Canada and the United States on Thursday for wrongfully arresting a senior executive at Chinese telecoms giant Huawei and demanded her immediate release.
The paper forms an expansion of the ACCC’s discount wholesale clothing service standards inquiry launched at the end of 2017, which has already seen NBN Co agree to pay out rebates to retail service providers where connections don’t go to plan.
Meng Wanzhou, Huawei's global chief financial officer, is facing extradition to the wholesle clothing usa suppliers and her arrest could rekindle tensions between Washington and Beijing only days after they agreed to a ceasefire in a bitter trade war.
Although the single currency moved narrowly in Asia then fell to 1.1321 in European morning, renewed buying emerged and price began to rally at New York open and later hit session highs at 1.1412 on selloff in U.S. equities and downbeat U.S. ADP employment data before retreating to 1.1359 on profit-taking as the greenback rebounded in tandem with U.S. stocks.
Reuters reported Italy's government is on the right track as it works on new budget numbers but needs to make "an extra effort", European Economics Commissioner Pierre Moscovici said on Thursday.
The British pound went through a volatile session. Although cable traded sideways in Asia and briefly fell to 1.2699 in European morning, price found renewed buying and rose steadily in tandem with euro to session highs at 1.2813 (Reuters) in New York on dollar's weakness before retreating.
In other news, Reuters reported the Brexit deal which Prime Minister Theresa May wants to get through the British parliament next week is the best Britain will get to arrange its orderly withdrawal from the EU, EU negotiator Michel Barnier said on Thursday.
On the data front, The Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 60.7 in November, from 60.3 the previous month. Economists had forecast a reading of 59.2.
Data to be released on Friday :
Australia AIG construction index, Japan household spending, coincident index, leading indicator, Germany industrial output, France industrial output, trade balance, import, export, U.K. Halifax house prices, Italy retail sales, EU GDP revised, Canada employment change, unemployment rate and U.S. non-farm payrolls, private payrolls, unemployment rate, average earning, University of Michigan sentiment prelim, wholesale t shirts inventories, wholesale.
NBN Co is facing the prospect of paying rebates to users in congested wireless cells, as well as daily rebates where any network connection is dogged by a fault for a long time.
The ideas are raised by the Australian Competition and Consumer Commission (ACCC) in a new consultation paper released today.
NBN Co has faced repeated questions throughout 2018 over the capacity of its fixed wireless network, and the number of users whose services don’t achieve speeds they were sold.
It has previously said that take-up and usage is much higher than was scoped when the network was designed back in 2011, leading to the problems.
The company is set to spend $800 million extra to remediate the network. It has also raised a novel restructure of the network as a way to solve some of the issues.
Others say that fixed wireless users should be switched over to fixed line, relieving some pressure on the existing network.
The ACCC has now raised a third prospect: effectively a financial penalty that NBN Co must pay in instances where fixed wireless users receive below-par performance.
“While we acknowledge that NBN Co is taking steps to address congestion, we consider that the provision of a rebate that would be payable based on each end user on a congested cell would incentivise NBN Co to ensure there is sufficient capacity on the network on an ongoing basis,” the ACCC said.
“It would also recognise that NBN Co is not delivering the full capability of its fixed wireless service to end users when they are impacted by congestion, especially during the critical busy hours.”
The ACCC indicated it will also examine the type of fixed wireless speed information that RSPs have available to them at the time of sale, so consumers can better decide whether NBN fixed wireless is for them.
In addition, the ACCC also today raised the prospect of more punitive rebates generally where a connection problem or fault exists for an extended period of time.
“We note that the [current] rebate structure could be further improved in cases where connection delays or faults extend over a longer timeframe,” the ACCC said.
“We see strong merits to the suggested model of a daily rebate to provide additional incentives for timely connections and fault rectification, and to ensure appropriate management of consumer experience in these cases.”
The watchdog will also examine how rebates paid out by NBN Co are passed through by the RSP to the customer.
It isn’t necessarily examining direct pass-through but rather indicated it would examine the “fair value benefit” that consumers wound up receiving when there were problems with a connection.
End of blame game?
The ACCC is also canvassing whether to force NBN Co to change its liability and indemnity clauses and accept more of the blame when things go wrong - and therefore have to pay out more rebates.
“We consider the indemnity provisions could transfer the risk of certain matters within NBN Co’s areas of responsibility to either customers or RSPs,” the ACCC said.
“We are concerned that this may result in downstream consumers or end users bearing liability for risks over which they have no control, or which NBN Co is in a better position to manage.”
In a similar vein, NBN Co could be forced to revert to an old way of handling so called “trouble tickets”, which in the past have been blamed for a lot of the back-and-forth between NBN Co and RSPs when an end user has a problem.
NBN Co currently only measures the time taken time to resolve a ticket from when they accept it, rather than when they acknowledge receiving it.
The ACCC said it did not consider this to be “justified”.
“While we recognise NBN Co’s efforts to improve the timeframes for reviewing trouble tickets, we consider that timely validation of trouble tickets should be part of its ordinary operational processes,” it said.
“Further, we consider commencing fault rectification from trouble ticket acknowledgement is preferable to the current process as it would more closely align with the end user’s experience of the fault.
“We understand that this change would be a reversion to the measurement of the end user fault rectification service level timeframes as they applied prior to [the current wholesale broadband agreement].”