6 things Australian traders will be talking about this morning

A gas flare at an oil well site. (Photo by Andrew Burton/Getty Images)

Good morning.

To the scoreboard:

Dow Jones Industrial Average: 24,748.00 -38.63 (-0.16%)

S&P 500: 2,711.57 +5.18 (+0.19%)

AUD/USD: 0.7783 +0.0016 (+0.21%)

ASX 200 SPI futures (June contracts): 5,865 (+25)

  1. It’s jobs day: The ABS will release March employment data at 11:30am AEDT. The median forecast is for 20,000 jobs to be added, which will market the 18th straight month of net jobs growth. David Scutt’s 10-second guide has everything you need to know.
  2. Oil goes through the roof: Both brent crude and WTI oil rose by more than 3%, as brent closed back above $US73 a barrel. The gains followed a larger-than-expected draw-down in weekly US oil inventories. There was also a Reuters report which suggested Saudi Arabia is seeking prices as high as $US100 a barrel.
  3. In the wake of rising oil prices, US 2-year bond yields jumped by five basis points to 2.43% overnight while benchmark 10-year yields are also higher at 2.87%. Higher oil prices raises the prospect of a rise in headline inflation.
  4. But UK bond yields fell and the British pound dipped by 0.6% against the USD after inflation data missed expectations last night. The Canadian dollar also fell sharply after the Bank of Canada kept rates on hold and BoC Governor Stephen Poloz was cautious in his outlook about the next rate hike.
  5. The Aussie dollar fought back after initially getting sold off by European traders. The AUD got a boost from a broad rise in commodity prices as copper shot higher and aluminium rose again, while iron ore is on the charge.
  6. And in stocks, there were strong gains for the US energy and materials sectors following the move in oil prices. But that was offset by falls elsewhere as the S&P500 closed flat. Locally, Australia’s resource-heavy index looks set to benefit and could break above recent resistance in today’s session.

Here’s the international events on today’s data calendar:

  • The UK has retail sales.
  • The US has initial jobless claims and the Philadelphia Fed manufacturing survey.

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