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
China – Caixin Services PMI (Mar)
United Kingdom – Construction PMI (Mar)
United States – FOMC Meeting Minutes
Macro Report
Markets reacted overnight to hawkish Federal Reserve comments that hinted at an aggressive reduction of the US balance sheet and noted that combined with rate hikes would move monetary policy closer to neutral later this year.
Meanwhile, the Ukrainian- Russia situation keeps simmering away, with western countries preparing to expand sanctions to include a ban on all new Investment in Russia.
The US dollar hit fresh 2-year highs with the DXY rising as high as 99.526, levels not seen since May 2020. The EUR/USD pair plunged to 1.0900. The AUD gave up some of its 2022 highs, pulling back from near 0.7660 to lows near US75.72 cents and was near US75.80 post the US close.
In Treasuries, the yield on 10-year Treasury notes rose by 14 points to a 3-year high near 2.55% and US 2-year yields lifted 10 points to near 2.53%.
Ahead, in Australia, Reserve Bank Deputy Governor Michele Bullock will face a Senate estimates hearing at 7.30pm AEST. In China, the Caixin services index is scheduled and the US Federal Reserve (FOMC) March 15-16 meeting minutes are due.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
| Currencies | Level | Change (%) |
| AUD/USD | 0.7584 | 0.05 |
| AUD/JPY | 93.714 | 0.05 |
| AUD/CNH | 4.8361 | 0.07 |
| DXY | 99.4720 | 0.48 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 2.547 | 0.15 |
| Aus 10 year | 2.975 | 0.06 |
| Equities | Level | Change (%) |
| S&P 500 | 4525 | -1.26 |
| NASDAQ | 14821 | -2.24 |
| ASX 200 | 7528 | 0.19 |
| Commodities | Level | Change (%) |
| Iron Ore | 142.49 | 0.18 |
| Gold | 1923.05 | -0.07 |
| Brent Crude oil | 106.64 | -0.83 |