The US employment data on Friday was strong although the lack of follow-through in seeing a stronger US$ was rather puzzling. The NFP grew by 223k in May, above expectation of 190k, while the headline unemployment rate dropped to 3.8%, beating expectation of 3.9% to hit the lowest level in 18 years. The wage growth was also solid, with average hourly earnings rising by 0.3% mm, beating expectation of 0.2% mm. Stock markets liked the figures and the US indices closed up by around 1%, while WTI was not so sure, and under pressure from the possibility of OPEC increasing production, fell by 1.8%. The metals were steady.
Looking ahead, today will be fairly quiet, with little to come from Asia, aside from some Australian figures, including the Retail Sales (exp 0.2%mm), ANZ Job Ads and May New Home Sales. Europe will look to the Sentix and the EU PPI (0.4%mm) for guidance, while the US may see some action after the release of the ISM Business Conditions and the April Factory Orders. The major events of the week will be tomorrow’s RBA Meeting – no change expected, Wednesday’s Australian GDP, Thursday’s EU Q1 GDP, and then Friday’s China Trade Balance for May. All up, it looks like geopolitics that will dominated the next few days.
|INDICES / COMMODITIES|
|OIL (WTI): 65.68|