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 – Unemployment rate(4.1% expected)
United States – Building Permits & Initial Jobless Claims (220k expected)
United Kingdom – Interest Rate decision (0.75% expected)
Macro Report
The US Federal Reserve on Wednesday raised its target range for the Federal Funds rate by 25 basis points to 0.25%-0.50%, the first rate hike since December 2018. The Fed said it “anticipates that ongoing increases in the target range will be appropriate.”
Also of note was the new Fed projections demonstrating policymakers being ready to shift their inflation fight into high gear, with one policymaker, St. Louis Fed President James Bullard, dissenting in favour of an even more aggressive approach.
Most fed members now see the federal funds rate rising to a range between 1.75% and 2% by the end of 2022, the equivalent of a quarter-percentage-point rate increase at each of the Fed’s six remaining policy meetings this year.
Major currencies were mostly higher against the US dollar in European and US trade. The Aussie dollar rose from lows near US72.02 cents to highs near US72.96 cents and was near US72.85 cents in early Australian hours. The Euro rose from lows near US$1.0950 to highs near US$1.1044 and was near US$1.1035 at the US close.
US treasuries fell following the Fed meeting, and signalling more rises throughout the year. US 2-year yields lifted 8 points to near 1.94% and the 10year to 2.246%, both hitting the highest levels since May 2019.
Share markets rose overnight. The European bourses closed higher, helped on by optimism of progress in talks between Ukraine and Russia. US markets rallied post the Fed interest rate decision and Jerome Powell’s press conference. The pan-European STOXX 600 index rose by 3.1%, and the S&P closed up 2.2%.
Ahead, in Australia, jobs and population data are issued. US housing starts, industrial production, jobless claims and manufacturing data are all due. The Bank of England hands down its policy decision.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7251 | 0.76 |
| AUD/JPY | 85.993 | 1.03 |
| AUD/CNH | 4.6186 | 0.58 |
| DXY | 98.6830 | -0.42 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 2.185 | 0.04 |
| Aus 10 year | 2.6 | 0.04 |
| Equities | Level | Change (%) |
| S&P 500 | 4310 | 1.11 |
| NASDAQ | 13714 | 1.90 |
| ASX 200 | 7175 | 1.10 |
| Commodities | Level | Change (%) |
| Iron Ore | 128.01 | -3.87 |
| Gold | 1908.91 | -0.47 |
| Brent Crude oil | 98.1 | -1.83 |