Weekly Market Recap
Week in review
- Australian unemployment rate rises to 5.2%
- Business confidence collapses to 75.6
- Consumer confidence plunges to -65.6
- RBA meeting minutes
- Eurozone PMI for manufacturing and services
- U.S. PMI for manufacturing and services
Thought of the week
The Australian dollar has shown remarkable strength since hitting a low in the middle of March. The lower rates of viral spread and success of containment measures, along with the outperformance of iron ore relative to other bulk commodities due to measures taken by Chinese officials, to support the economy have supported AUD. Meanwhile, the RBA’s approach to QE has been relatively constrained compared to other central banks. All this means that the Aussie dollar could be stronger in the near term but this doesn’t alter the factors that could weigh on growth and the currency once the COVID-19 crisis passes. Household leverage remains an issue, while consumption patterns may change as the record economic expansion comes to an end.
AUD showing remarkable strength
Performance vs. the USD since March 19 low
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.