Global equity markets continued to rise, as risk sentiment improves, heading for a Christmas rally. The ADP Private Sector jobs report surprised, with a loss of 31,000 jobs, in the private sector. The market took this as further reason for the Fed to cut rates, once again next week and equities surged. The rise in confidence allowed a retreat in the US Dollar, with the EUR jumping above 1.1650, while the GBP ploughed through 1.3300.
The weaker reserve drove further gains in commodity currencies, with the NZD approaching 0.5750, while the AUD looked to regain 0.6600. Australian Q3 GDP jumped 2.1% on an annualised basis, a big improvement, but reflecting huge increases in immigration. Markets will watch the important PCE Inflation indicator, set to be released in the US Friday, to gauge prospects of a Fed rate cut next week.
