Scoreboard: Dollar bounce

US payrolls figures came in well below expectations on Friday, while the Australian dollar is back to US90 cents.

First up a huge happy new year to all! I hope 2014 is a prosperous one – health, wealth and many good deeds. Coming back after three glorious weeks off, I can’t say too much has really changed in the market, which isn’t necessarily a bad thing. The S&P500 is about 2 per cent higher, which is the same as the All Ords. The Australian dollar is a little bit higher at 0.900 – but not meaningfully so. One of the biggest moves was actually in the rates space. Recall that yields spiked after the taper, and at the peak were just over 3 per cent – not in itself higher but a sizeable move from the 2013 low of 1.6 per cent or so. Since Christmas, the US 10-year bond yield has dropped about 17bp from a peak of 3.03 per cent to 2.86 per cent. Of course, most of that occurred after the payrolls figures just on Friday. Job gains in the US were paltry if you haven’t heard already, at 74,000 – well down from the expectation of about 200,000.


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