Market WATCh Weekly 9 October 2020

Market WATCh Weekly 9 October 2020

October 10, 2020

The RBA held interest rates steady, yet opened the door for future easing. The Commonwealth budget showed a record post-war deficit and a sharp rise in public debt, though to moderate levels compared to many advanced economies. The Western Australian Budget was also released, with a budget surplus of A$1.2B forecast for 2020-21. The Australian trade balance narrowed in August due mainly to weaker exports of non-monetary gold. Business confidence and conditions improved in September, while job ads bounced above the pre-pandemic level in most states. Recovery in payrolls resumed in the first half of September but is weaker than in the previous months. In the US, ISM Services PMI unexpectedly rose in September, though labour market the recovery remains anaemic. The Chinese Caixin Services PMI increased last month, pointing to sustained expansion.

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