Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
AUD/EUR has been the biggest gainer this week, adding around 1.5% since the beginning of the week as #Covid19 cases continues to surge in and around Europe’s largest metropolitan areas. Europe is, at the moment the epicentre of the pandemic along with the U.S, and that probably explains to some degree the AUD’s recent gains vs. both the Euro and USD. Gains have been more muted vs. the Pound as they keep infections somewhat contained – currently the U.K has around 25,000 cases.
Doubts About China Data:
Chinese economic data was released yesterday showing a sharp V-shaped recovery in both manufacturing and non-manufacturing PMI for the month of March. However many in the financial press doubt the figures released, given the CCP’s history with finessing economic data to sow a sense of stability and growth. The truth is no one knows if the numbers are accurate, they may be, they may be not. But China, along with Japan, Korea, Singapore and a number of other Asian countries are showing that a reasonably quick recovery is possible with the right social distancing and containment measures.
U.S Jobs Numbers:
U.S jobs data is released tonight – it’s the preliminary data only, but gives a pretty accurate read on what the official non-farms data will show Friday night. Typically non-farm employment numbers are one of the most crucial pieces of economic data released each month in the U.S and the market is braced for a horrendous print tonight of around -150,000 jobs. Unemployment claims follow tomorrow night.
AUD EXCHANGE RATES:
AUD/USD – 0.6115
AUD/GBP – 0.4912
AUD/EUR – 0.5537
AUD/NZD – 1.0270
AUD/JPY – 65.700
All Ords (XAO) – 5,110
Gold – A$2,570/oz
Silver – A$22.79/oz
WTI – US$21.69 barrel
DATA RELEASES TODAY:
USD – ADP Non-Farm Employment Change at 11.15pm
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