Daily Market Commentary 1st July 2021

US equity markets look to close out the June quarter on a positive note, after a strong rallies to near historical record levels. The QE and monetary policy of Central Banks around the world have caused massive asset bubbles, but are now facing the consequences, in the form of inflation and debt. Rising inflation around the world, despite the lack of growth, is the canary in the mineshaft for the near-term economic reality. Inflation is on the rise, but PPI is really on fire, which will translate directly into consumer prices. The Dollar continued to rally, with the EUR crashing to 1.1840, while the GBP fell to 1.3800.

The rebounding reserve has taken its toll on commodity currencies, with the AUD falling below 0.7500, while the NZD dropped to 0.6970. These currencies have not been aided by virus upsurge scares and over reaction from power mad political leaders. NZ Business Confidence headed back south again and markets are looking for a strong lead from European and US markets. Market attention will focus on the US Non Farm Payrolls number out Friday, with the lead ADP Private Job numbers report, beating expectations.