The RBA left interest rates unchanged and assured markets QE would continue until inflation returned to the target range (2-3%), while wages growth needs to be materially higher. The RBA did not expect these required conditions until 2024. Markets reacted positively to this expected outcome and positively to the economic perception of a strong economic recovery. The Central Bank also noted that it was monitoring the Housing Market closely as the bull run continues strongly. The currency did move lower but recovered to trade back above 0.7650. The NZD also dipped but recovered to 0.7050.
US equity markets continued to trade at around record levels and US Bond yields settled. Global markets are loving the massive fiscal stimulus, combined with the monetary support, which has allowed massive asset bubbles in equities, commodities and other massive classes. Global Dairy prices also gained some ground, in conjunction with other commodities. Global economic recovery remains the narrative and the roll-out of the vaccine supports this. The re-opening remains impaired in Europe.