US payrolls report boosts risk appetite. US equities surged on relief only 54,000 people lost jobs in August, compared to expectations of 105,000.

The S&P500, which had ranged quietly until the report, closed 1.3% higher. Commodities closed 0.6% higher, oil down 0.6% on a weaker US services-ISM report, but copper up 0.1%, and silver (+1.2%) making a post-March 2008 high.

US 10yr treasury yields rose 7bp to 2.70%, having reached 2.76% immediately after the payroll data. President Obama spoke later on unemployment and the economy, fuelling rumours of new stimulus.

The US dollar reacted to the better than expected payroll data, falling from around 82.50 to 82.00 during the US session. EUR rose from the Sydney closing level of 1.2820 to 1.2900.

USD/JPY spiked 80 pips on the data (the yen being the preferred safe haven of the pair), but closed little changed overall around 84.20. AUD was just under 0.9100 before the data and surged to 0.9179, the session high.

It opens in NZ this morning weaker at 0.9146. NZD's session high was 0.7220, but it opens weaker this morning at 0.7185. AUD/NZD consolidated in a wide range between 1.2680 and 1.2740. It opens this morning little changed, despite NZ's earthquake on Saturday expected to be its most costly natural disaster.

AUD/USD and NZD/USD outlook next 24 hours: AUD major resistance remains 0.9220, the August high. NZD should similarly be capped by 0.7220, with any knee-jerk response to the earthquake being downwards.

Imre Speizer, Westpac Global Strategy Group