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
New Zealand– RBNZ Official Cash Rate (1.25% Expected)
China – Trade Balance
Macro Report
US Inflation figures were the key focus in markets last night and the figures did not disappoint to bring volatility to the market. Year on Year the headline inflation printed at 8.5% (8.4% expected) whilst core printed 6.5%(6.4% expected). The small miss in core was enough to see a large sell off in USD as markets as the headline figure was mainly attributed to higher energy prices. The reduced core numbers highlighted that consumption was already decreasing in a positive sign for the FED. As such, the market reduced some of the aggressiveness of the hikes priced into the US curve as the 2 year yield dropped 0.09% whilst the 10 year was 0.06% lower.
Oil prices grinded higher to over $100/barrel again as tensions with Russia and Ukraine continue. President Putin alleged the images of the chemical attacks were merely fakes and were the Wests propaganda. Stocks trading ranges were minimal off the back drop of market data and geopolitical headlines, but ultimately finished marginally lower on the day.
Focus today will be on the RBNZ with market expecting a 0.25% hike to the cash rate with the potential for a 0.50% hike.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
| Currencies | Level | Change (%) |
| AUD/USD | 0.7456 | -0.01 |
| AUD/JPY | 93.487 | 0.02 |
| AUD/CNH | 4.7545 | 0.02 |
| DXY | 100.2920 | 0.36 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 2.721 | -0.06 |
| Aus 10 year | 3.085 | -0.06 |
| Equities | Level | Change (%) |
| S&P 500 | 4397 | -0.34 |
| NASDAQ | 13940 | -0.36 |
| ASX 200 | 7454 | -0.42 |
| Commodities | Level | Change (%) |
| Iron Ore | 143.37 | -0.07 |
| Gold | 1966.86 | 0.01 |
| Brent Crude oil | 104.64 | 6.26 |