US Market continued to surge, with the Nasdaq and S&P both reaching further historical record highs, while the Dow fast approaches the previous pre-pandemic record. The US economy is re-opening quickly, how ever ad-hoc, delivering record improvements in economic statistics. This is not surprising in a ‘V-shaped’ recovery, which appears to be the case, roaring back from the short-sharp collapse sparked by pandemic closures.
The US Dollar has rebounded strongly over recent days, pushing the EUR back to 1.1830 ,while the GBP slipped to 1.3325. German Retail Sales contracted 0.9%, while US Factory Orders increased 6.4% and Total Vehicle Sales jumped to 15.2 million. The big focus is on US employment data and Non-Farm Payrolls out Friday. The ADP added 428,000 private sector jobs, well below expectations, which may not bode well for NFP.
Australian GDP contracted 7% for the last quarter, worse than expected, as warned by the RBA. The Australian Dollar fell back to 0.7300, not helped by the rising reserve, while the NZD traded 0.6750. The US employment data will control the narrative to close out a strong beginning to September.