Daily Market Commentary 4th May 2021

US stocks regained losses suffered last Friday, opening the week strongly. US Manufacturing numbers were strong, although not as high as expected. The economic reopening and recovery will be fuelled by the consumer, funded by the Fiscal and monetary stimulus flooding economies. The US Dollar retreated, with the EUR rising to 1.2060, while the GBP regained 1.3900.

Commodity currencies also rebounded strongly, with the NZD up to 0.7200, while the AUD traded above 0.7750. Australian Manufacturing data was strong, along with a healthy increase in Job advertisements. Local markets will be watching the RBA closely and the rate decision. They will remain in lock-step with the Fed, by holding rates and ignoring inflationary pressures. The associated commentary will provide any divergence of opinion.