Closing Bell 5th October: Australia’s Trade Surplus Surges, ASX Finds Footing

Global Bond Yields and US Jobs Data
Bond yields worldwide pulled back from their multi-year peaks after US jobs data came in softer than anticipated, alleviating concerns about persistent high interest rates to curb inflation. The upcoming US labour report is keenly awaited, predicting 170,000 new jobs for September. Concurrently, the Australian dollar rebounded from its 11-month low, and Australian bond yields also saw a decline.

Yen’s Speculated Intervention
The Japanese yen surged to 148.43 per $US, sparking speculations of Japanese authorities intervening to bolster the currency. Earlier this week, the yen had dipped to 147.37 per $US but rebounded past the 150 per $US mark, a significant threshold for potential intervention. Masato Kanda, Japan’s top currency official, remained tight-lipped about any intervention.

Australia’s Trade Surplus Growth
Australia’s trade balance surplus for August soared to $9.64 billion, surpassing July’s $7.32 billion and outdoing economists’ predictions. The surge was attributed to a 4% increase in exports, particularly gold, while imports dipped by 0.4%.