Wednesday's Upcoming Economic Calendar

On the upcoming economic calendar for Wednesday, January 7th there are three key news releases to be aware of.

The first, at 08:15 the United States will be releasing the ADP non-farm employment change for October. This release measures the number of new jobs created in the private sector, no government employment data figures are included. Unlike the Nonfarm Payrolls this report includes businesses that employ less than 100 members of staff. This release has been reporting losses since September; estimates are expected to come in at a -450 thousand, the largest reading since records have been kept. The previous number has also already been revised, from a -250K to an even worse -472K for the month of December.

Lastly, at 19:30 Australia is expected to release the building approvals and trade balance for the month. The building approvals report indicates the number of domestic building permits granted for the month. Strong growth in new approvals and permits indicates a growing housing market. Because real estate generally leads economic developments - housing tends to thrive at the start of booms and wane at the onset of recession - the figure can be used with others to forecast future growth in the economy as a whole. This report is actually expected to increase over last month's -5.4 percent to -1.3 percent.

The trade balance figure is simply the difference between the amount of export and imports of Australian goods and services for the reported month with Australia and other foreign trade partners. Subsequently, when exports are greater than imports, or positive net exports, a trade surplus is created. However, when imports are greater than exports, a deficit is created. Simply put, here, there is more money leaving the country than actually coming in. As a result, the report is taken into heavy consideration as it indicates flow of goods and services and stand as one of the biggest components of the Balance of Payments report. This report is expected to come in relatively steady at 2.15 billion

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