Strong US jobs growth boosts USD

Just briefly in today's #5in5withANZ:

US jobs growth was much stronger than expected, which lifted US Treasury yields 12-20 bps and shunted the US dollar 0.5% higher. Economists also now see a 50 basis point cut by the Reserve Bank of New Zealand on Wednesday

5 things to know in 5 minutes:

1. US non-farm payrolls rose 254,000 in September, beating forecasts for around 150,000. US stocks rose around 1%. The US dollar index rose 0.5%. The Aussie dollar fell to 67.96 USc from 68.43 just before the jobs data came out. The Kiwi dollar closed at 61.58 USc, down from just over 62 USc before the data.
2. Markets have increased their expectations for the Fed’s next cut in November being 25 basis points to 97% from 67% before the data. ANZ Economist Bansi Madhavani, CFA says the jobs figures were consistent with a soft landing and moderate easing.
3. The RBNZ is now expected to cut 50 basis points when it makes its decision this Wednesday, says ANZ New Zealand Chief Economist Sharon Zollner .
4. Sharon says the NZIER’s Quarterly Survey of Business Opinion was instrumental in shifting economists’ views from a 25 basis point cut to a 50 basis point cut.
5. She says the housing market has already picked up and may rise further after the bigger cut on Wednesday, and the potential for another one in late November.

In our bonus Deep Dive interview:

ANZ’s Head of Australian Economics Adam Boyton reveals what a surprising rise in workforce participation means for interest rates.

Cheers

Bernard

PS: Catch you tomorrow with more analysis of the strong US jobs numbers.