•US private payrolls increased 177k in August and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Fed to raise rates this year. The ADP National Employment Report showed private payrolls increased 177,000 jobs this month after rising 194,000 in July. August’s gain was in line with economists’ expectations. The services sector accounted for all the increase, with construction shedding another 2,000 jobs on top of the 5,000 positions lost in July. Manufacturing payrolls were flat after rising by 5,000 jobs in July.
•The United States has accused the European Union of grabbing revenue intended for U.S. coffers when it ordered Apple to pay up to $14.5 billion in back taxes, a decision that could cause friction at an international summit in China next week.
•Chicago Federal Reserve Bank President Charles Evans on Wednesday said he is increasingly convinced that U.S. economic growth has slowed permanently, a situation that will keep U.S. interest rates low for a long time ahead.
•Brazil’s Gross domestic product fell 0.6 percent in Q2 compared with Q1,slightly more than the 0.5 percent drop expected in a Reuters poll.
•The International Monetary Fund said it would “be in a position” to lift its censure on Argentina later this year after recent changes the country has made to the way it reports official economic data.
•South Africa’s trade surplus shrank to 5.22 billion rand ($359 million) versus a revised surplus of 12.47 billion rand in June.
•British house prices rose 5.6 percent in August compared with the same month last year, faster than July’s 5.2 percent.
•German retail sales data meanwhile showed the sector grew by 1.7 percent in real terms from January to July compared with the same period last year.
•The USD index gave up gains after weak manufacturing data dented optimism about US economic growth ahead of Friday’s jobs report.
•The USD gained against the yen to 103.39yen, after hitting 103.53, its highest since July 29.
•Sterling rose on Wednesday, boosted by improved consumer confidence and rising British house prices in August, which added to signs the economy is holding up well in the wake of June’s shock vote to leave the European Union.
•CAD weakened as oil fell and data showed a deeper contraction in the country’s economy for Q2 than what the Bank of Canada had projected. Canada’s economy shrank at an annualized 1.6 percent rate in the second quarter in its worst showing in seven years, hurt by a drop in exports and a disruption to oil production caused by wildfires in northern Alberta.
•AUD has been trading near one-month lows after upbeat US data added to the risk of a near-term rate hike by the Fed.
•The NZD found support from upbeat business confidence data showing that although business sentiment had slipped slightly in August, firms’ outlook for their own activity had risen.