Key Data Being Released Today.
Thursday:
- USD FOMC Meeting Minutes
- AUD Employment Change: exp. -108.5K
- AUD Unemployment Rate: exp. 4.8%
- USD PPI /m/: exp. 0.4%
- USD Core PPI m/m: exp. 0.6%
- USD Unemployment Claims: exp. 328K
The Aussie Dollar
This morning’s focus will be on the Australian unemployment figures, as the expected employment change has fallen by 30K since the beginning of the week. Special focus will be on the underemployed and those that have left the labor force.
The market sentiment continues to swing between rink on and off, this week is no different. With European stock indexes rising between 0.17% and 0.75%, and in the USD equity indexes are losing in the range of 0.25% and 0.52% (only exemption being that NASDAQ which closed in positive territory).
Factors like the higher US CPI reading, rising energy prices, and the possibility of slower growth weighed on the market sentiment overnight. On top of this, the DXY lost ground as US bond yields fell.
With 0.7400 within striking distance, there was potential for the Aussie Dollar to rise more than it did, but it was kept on a leash due to a fall in Iron Ore prices.
Where the market will go from here is anyone’s guess. But businesses that are proactive rather than reactive, will be able to protect their business and crystalize gains on the way up, rather than react when the market turns panic hedge, trying to stem the bleeding on the way down.
If you want to discuss how a how we can help your business protect itself from unfavorable FX fluctuations, please get in contact with your account manager or email us at sales@cafx.com
AUD/USD Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4363
- NASDAQ closed at 14782
- ASX 200 closed at 7272
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7380
- AUD/JPY – At the time of writing this report trades at 83.258
- AUD/CNH – At the time of writing this report trades at 4.7413
- DXY (US Dollar Index) – At the time of writing this report trades 94.003
- AUD/EUR – At the time of writing this report trades 0.6364
- Bonds
- US 10-year Bonds are currently at 1.653
- Commodities
- Iron Ore – Trading at USD/T 122.3
- Gold – trading at USD/OZ 1792
- Brent Crude Oil – Trading at USD/Bbl 83.33