The blow-out in Non Farm Payrolls, released Good Friday, sparked an explosive surge to start the new week in US equities. Non Farm Payrolls beat all expectations, while the headline Unemployment rate fell to 6%, pushing market confidence over the post-pandemic recovery, to new levels. US Bond Yields remain high, but acceptable to some, as re-opening and the vaccine roll-out continues. The US Dollar drifted, with the EUR regaining 1.1800, while the GBP broke back above 1.3900.
Commodity currencies also took advantage of the surge in market sentiment and the drift in the reserve, with the NZD pushing up to 0.7050, while the AUD regained 0.7650. The RBA will be the centre of attention in local markets, with no change to monetary policy or interest rates expected, although the narrative will be closely watched. The Central Bank is likely to address the resurgent economy, the pathway forward for interest rates and QE supporting the markets with unprecedented monetary stimulus.