Australian employment rises; Coinbase IPO

Market analysis from Stephen Innes, Chief Global Market Strategist at Axi,

Australian employment rises

 Australian employment rises a higher-than-expected 70.7k in March, vs 35.0k consensus, 88.7k last, topping estimates for the second consecutive month.

The Australian dollar, like its G10 FX peers more broadly, is having a good week on falling US real yields and higher oil prices.

Positive domestic data should add to AUD upside, the fact that the RBA’s steadfast dovishness should not detract from. Indeed, the labour market is recovering more quickly than the central bank is expecting.

In terms of the release’s detail, the fall in full-time employment (by 20.8k) is a minor blemish. The unemployment rate fell by 0.2pp to 5.6% (cons: 5.7%).

Gold moderately weaker in Asia trade

Gold prices were moderately weaker, finding a solid hand in Asia. This, despite a modestly weaker Gold, isn’t getting much help from US yields at 1.6 %, is proving a tough nut to crack on the downside.

Coinbase IPO

It is dumb to have a bearish bitcoin view as we are now well past the point of the cycle where bearish views in crypto and stocks come across as dumb and out of touch.

Still, I would be remiss if I didn’t point out that the Coinbase IPO doesn’t necessarily translate into an immediate stock winner.

There is a theory that when the management of an industry leader decides to cash out via an IPO, it’s a signal that the proverbial juice has been entirely squeezed.

Insiders that see exponential upside are happy to wait. When they see diminished upside relative to risk, they monetise their stake.