Daily Market Commentary 2nd June 2021

Share This Post

The RBA left rates unchanged and held a bullish view of the economic recovery, but cited the virus as a threat to that recovery. The RBA said Unemployment was falling faster than expected and the economic recovery was strong, but warned that an upsurge in the virus and lock-downs (as in Victoria at the moment), could threaten the economic performance. The view that inflation was modest and temporary, allayed fears, but also warned of the house price bubble. The RBA report prompted a rise in the AUD to 0.7770, but later settled back below 0.7740, while the NZD drifted to 0.7250.

European markets surged, after market released manufacturing data, which beat expectations, embracing the economic re-open. The UK Manufacturing number spiked upwards, with a much more robust recovery than the EU, although the GBP drifted to 1.4160. The avalanche of economic data will continue to drive market sentiment, heading into the all-important Non Farm Payrolls, released Friday.

Collinson & Co Contact