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  • AUD and NZD jump ahead of the RBA’s SoMP and NFP later today.
  • Risk-on themes are dominating markets into the close for the week.

AUD and NZD have both popped higher to make fresh highs ahead of the Reserve Bank of Australia’s quarterly Monetary Policy Statement at the top of the hour. The commodity complex has been outperforming at the end of this week, boosted by a risk-on theme with markets looking through rose-tinted glasses at the outlook for the global economy.

Markets have been enthused by the fact that the COVID-19 has peaked and that nations are seeking to open their economies, taking a leaf out of China’s book and hoping for the same results where there has not been a second wave of the contagion. This, in turn, has weighed on the US dollar at the end of his week and US yields have dropped, weighing on the greenback. Next up for the buck will be the Nonfarm Payrolls.

Key events coming up

The jobless claims data will no doubt be reflected in a plunge in payrolls today along with a sharp rise in the unemployment rate which should keep the dollar on the back foot.

AUD/USD has rallied to a high of 0.6531 and NZD/USD to 0.6116. For a preview of the main event for Asia, see here: When is the RBA Monetary Policy Statement and how could it affect AUD/USD?

AUD/USD levels