Back To Local Matters

YM and XM sit 1.5 below their respective settlement levels, with the latter correcting away from overnight lows ahead of Sydney trade, as participants reacted to the final FOMC meeting of 2020.

• The domestic labour market report headlines the local docket today, with the small print and dynamics surrounding the re-opening of Victoria set to be scrutinised. Elsewhere, participants will be on the lookout for the potential release of the MYEFO. The MYEFO should reflect a lower, but still extraordinary (at least by Australian standards) deficit trajectory, while economic projections will further reflect the fact that the worst-case scenario has been avoided in Australia. A reminder that the budget was only delivered in October, so there is much smaller gap than usual between the release of the budget & the MYEFO.