The Aussie Dollar put in a solid rally versus the US Dollar overnight as risk appetite returned to US markets. Stocks on Wall Street rose into the closing bell following a morning lull, encouraged by rosy data on unemployment claims. Those numbers helped to temper some risk aversion ahead of tonight’s highly anticipated US non-farm payrolls report—which is likely to influence short-term economic forecast and alter the Fed’s perceived rate hike path. Analysts expect to see the US add 323k jobs in May, according to a Bloomberg survey.
Furthermore, the rebound in oil prices, following a decision by OPEC+ to increase production, also supports the market’s view that the odds of a recession may be waning. The oil cartel and its allies, on Thursday, announced that they would increase production by 648,000 barrels per day in July and August. The move comes amid soaring gasoline prices, perhaps stoking fears among members that those high prices may induce demand destruction, which may already be occurring in the United States.
The price of copper in New York increased more than 5% to its highest level since April 25. An announcement from Chile’s government stated that copper production has dropped across its state-owned mining enterprises on a year-over-year basis. China’s recent rollback of Covid restrictions provided a solid base for the supply-side news to drive prices higher. APAC traders will be monitoring home loans data out of Australia, set to cross the wires at 01:30 GMT.
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