Daily Market Commentary 3rd September 2021

The US Challenger jobs report and Weekly Jobless Claims both contradicted the weaker than expected ADP jobs report released yesterday, as a precursor to the all important Non Farm Payrolls, set to be released tonight. The Challenger report confirmed job cuts were down to 15,723, while weekly jobless claims were slightly better than forecast. This was a boon to markets, following the ADP private sector jobs report, which showed almost half as many jobs were added, than were expected. This lifted equity markets and allowed the safe haven US Dollar to continue to beat a retreat. The GBP rallied to 1.3820, while the EUR pushed up to 1.1850, following an inflated EU PPI number. EU PPI came in at 2.3% for July and at an annualised 12.1%, putting huge input cost pressures on inflation and cost of living.

Australian Trade numbers were better than expected, as a sizable surge in volume, saw exports surge 5% and outshine imports, which only increased by 3%. NZ Terms of Trade improved, with larger than expected exports price rises (5%), outweighing the growth in import prices (3%). The positive trading data complimented the weaker reserve, with the AUD rising towards 0.7400, while the NZD regained 0.7100.

All eyes are now laser focused on Non Farm Payrolls and US Employment numbers.