Cheaper Overnight, Labour Market Data Eyed

Futures traded steeper in post-Sydney trade, aided by the impetus spilling over from the U.S. Tsy space, leaving YM -1.8 and XM -2.9 come the close.

• The monthly labour market report headlines the local docket on Thursday. Consensus looks for an 80K fall in the headline employment figure, driven by the widespread lockdowns evident during August. Note that the dispersion seen in the BBG survey covering the release is wide, with the range of estimates sitting between -300K and +2K. The hours worked component is what matters for policymakers, given the COVID-related noise in the headline, with the underemployment and underutilisation rates also set to receive attention.
• We will also see the latest round of scheduled ACGB purchases from the RBA, while trans-Tasman impetus may become apparent in the wake of the NZ GDP print covering Q2 (although this data is of course backward looking in nature).