US growth beats market estimates.

The market got somewhat of another surprise Thursday when the latest US GDP growth number showed the US grew at 2.8% for the third quarter (annualised) which was 0.8% better than leading economists expected. This of course sent the US Dollar higher because traders immediately took a stronger GDP number as a signal that the US Fed may decide to taper sooner rather than later. I am sure the US Fed will have taken close notice of the GDP number but the fact remains the US Fed has clearly stated many times and continues to clearly state that it will only taper the stimulus when jobs growth improves and the official unemployment number comes substantially further lower.  We will find that out tonight.

We will get the latest official unemployment number tonight and most leading economists expect a the US economy to have added 125,000 jobs which is well short of what it will take to get the jobless rate to the US Fed's "taper target." Will the US Fed all of a sudden change its mind and now decide that its US GDP that it will use as the target for tapering? No, I don't believe this will be the case, it will stick to what it has consistently said and that is "jobs" are its #1 priority before making a decision to taper. If the data number tonight is better than the market expects we'll see further rallies on the US Dollar and falls on the Kiwi, Aussie & Euro.

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