MORNING BRIEFING: Strong Australian Employment boosts risk appetite 

What’s new:
Forex: US dollar eases as US yields find stability; AUD rallies on strong jobs data
Global Markets: Risk appetite boosted by Australian jobs report; Gold firms up 
Australia: Very strong Australian employment report; 54.6k (cons. 20k) jobs created
New Zealand: RBNZ keep rates on hold and revised down outlook for future hikes

Today:

Asian Rates & Indices:
EURUSD: 1.3322 - 1.3243
USDCHF: 0.9870 – 0.9820
GBPUSD: 1.5841 - 1.5788
EURJPY: 111.64 – 111.26
USDJPY: 84.11 – 83.66
DowJones: 11'372.48 +0.12%
NASDAQ: 2'609.16 +0.41%
S & P 500: 1'228.28 +0.37%
Nikkei: 10’285.88 +0.52%
Shanghai: 2’810.95 -1.32%
Gold: $ 1'389.80
Crude Oil: $ 89.34

Comments:
 
The US dollar paused on Thursday as US bond yields showed signs of stability while the Australian dollar was boosted by a strong jobs report showing the country's employment is growing far faster than anticipated.

US Treasury prices were up on Thursday after a 2-day surge in yields, pulling the greenback lower, as investors are seeing both higher US yields and higher growth as supportive for the dollar, at the moment.

A very strong Australian jobs report released today boosted risk appetite as higher-yielding currencies and global equity markets were all seen on the rise. The euro was also aided by the surge in Australian employment, and by the fact that debt concerns backed off slightly as euro zone bond yields fell slightly.  However, investors are still said to be concerned as concerns about euro zone debt financing could crop up to hurt the single currency at any moment.

The Australian dollar was therefore the best performer trading up to 0.9884 against the greenback and 82.83 versus the yen. The euro was up to 1.3322 versus the greenback after going as low as 1.3180 yesterday. The New Zealand dollar was the biggest loser earlier today, after the Royal Bank of New Zealand kept rates unchanged at 3.0 percent while also sounding dovish and revised down their outlook for future rate hikes.

Good Day,

Emman Xuereb
Trading Desk
RTFX Ltd
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