Welcome to our daily market update where we help keep you informed on the latest happenings in the world of FX and show you what this means for the Mighty Aussie Dollar.
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Key Data Being Released Today
Australia – Business Confidence
Japan – Trade Balance December(-¥200.7b expected)
Japan – Labor Cash Earnings December(+0.9% expected)
Macro Report
Major currencies were mixed against the US dollar in European and US trade. The Aussie dollar rose, clawing back a lot of Fridays losses, from near US70.80 cents to US71.25 cents and was near highs in afternoon US trade. It was the best performing of the G10 currency pairs overnight. The Aussie dollar also seen to be somewhat of a beneficiary of post Lunar New Year sentiment, with Chinese equity indices trading higher as well as Iron Ore and Australian mining stocks.
The Euro generally held between US$1.1415 and US$1.455 and was near US$1.1440 in afternoon US trade, giving back just a little of last weeks gains post the ECB meeting.
European equity markets traded higher, US indices were mixed, whilst US long-term treasuries rose.
In geopolitical news, French President Macon is sitting down with Russian president Putin in an attempt to deescalate the Ukraine situation.
The economic calendar remains rather light early in week. Ahead, In Australia, the NAB business survey is released with ANZ/Roy Morgan weekly consumer confidence. In the US, international trade data is released with Economic Optimism and Business Optimism surveys.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7125 | 0.75 |
| AUD/JPY | 81.995 | 0.57 |
| AUD/CNH | 4.5328 | 0.67 |
| DXY | 95.4440 | -0.04 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.918 | 0.01 |
| Aus 10 year | 2.05 | 0.04 |
| Equities | Level | Change (%) |
| S&P 500 | 4484 | -0.37 |
| NASDAQ | 14571 | -0.84 |
| ASX 200 | 7111 | -0.13 |
| Commodities | Level | Change (%) |
| Iron Ore | 132.5 | 0.00 |
| Gold | 1821.04 | 0.71 |
| Brent Crude oil | 92.93 | 1.31 |