Tuesday 9th June 2020

Equity markets continue to rise and the US dollar continues to weaken with increasing risk-on sentiment, helped along by the surprising rise in jobs in the US in Friday’s non-farms payroll data. NAB’s Gavin Friend says the numbers raise the question as to whether the US economy will bounce back sooner than expected. The Australian and Kiwi dollars are beneficiaries for now, largely through the fall in the US dollar, but also the rise in iron ore prices and the fact that New Zealand is now COVID-19 free. Phil Dobbie asks whether the US job numbers will impact the Fed’s decision later in the week. There’s also discussion about the NAB Business survey, out this morning.