Global markets open with a risk-cautious tone as softer US data accelerates a dovish Fed repricing and dollar weakness.

Often, when a security trades in a tight range over an extended period, as we see with bonds currently, a breakout from the range can be strong.

The AUD/USD exchange rate soared to the highest level since February 2023 as the US Dollar Index retreat gained steam.

Markets have pre-empted a softer payroll print relative to the consensus 65k, largely on the back of Kevin Hassett’s warnings earlier this week.

The New Zealand dollar dipped as prices failed to recapture the recent peak.