Daily Market Commentary 20th April 2021

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US equity markets came off record and historical highs, to begin the week, while the US 10 year Bond Yield crept up over 1.6%. The US Dollar remained soft, with the EUR rising above 1.2000, while the GBP pushed up to 1.3980. EU Current Account numbers were positive but Construction contracted 5.8%. The ECB announces it’s latest monetary policy later in the week and inflation and growth will be closely watched, in terms of data releases.

The RBA minutes will confirm the internal conversation over the state of the Australian economy and policy decision making, which may impact local markets today. Australian New Home Sales spiked upwards, in yesterdays data, confirming the relative strength of the domestic economy. The AUD jumped up to 0.7750, enabled by the weaker reserve, while the NZD traded up to 0.7170.

Fiscal and monetary stimulus continues to dominate markets and the only impediment appears to be inflation and interest rates.

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