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.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com
Key Data Being Released Today
| China – | Fixed Asset Investment (YoY) (Jun) | ||||
| GDP (YoY) (Q2) | |||||
| Industrial Production (YoY) (Jun) | |||||
| Retail Sales (YoY) (Jun) | |||||
| Japan – | Tertiary Industry Activity Index (MoM) | ||||
| Australia – | HIA New Home Sales (MoM) | ||||
| United States – | Core Retail Sales (MoM) (Jun) | ||||
| Import Price Index (MoM) (Jun) | |||||
| Export Price Index (MoM) (Jun) | |||||
| NY Empire State Manufacturing Index (Jul) | |||||
| Industrial Production (YoY) (Jun) | |||||
| Canada – | Foreign Securities Purchases (May) | ||||
| Wholesale Sales (MoM) (May) | |||||
Macro Report
US June Producer Price Index (PPI) released last night generated conflicting signals, with a better-than-expected print of 11.3%, significantly higher than the forecasted 10.7%. Uncertainty and confusion are circulating due to PPI contradicting Wednesday night’s disastrous US inflation report, which pointed toward a US recession.
Fed Governor Waller and Fed Bank of St. Louis President Bullard mentioned they would support a 75 basis-point hike in July following the inflation report release, but are also open to a larger hike if need be.
Against this backdrop, US stocks have slumped. Not only equities have taken a beating, but also growth-linked commodities due to concerns that an economic slowdown may dampen demand for raw materials. Brent dropped by more than 5%, and although it recovered, Brent remains below the 100USD per barrel level.
Meanwhile, in the current environment, the US dollar is able to rally. At the same time, downward pressure is placed on the commodity-linked currencies, with the Aussie dollar plunging to the 66-cent level before a slight rebound.
All this makes today’s release of the retail sales report for the month of June highly anticipated.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6749 | -0.01 |
| AUD/JPY | 93.8390 | 0.08 |
| AUD/CNH | 4.5641 | -0.02 |
| DXY | 108.5440 | 0.54 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.96 | 0.056 |
| Aus 10 year | 3.40 | 0.028 |
| Equities | Level | Change (%) |
| S&P 500 | 3790.38 | -11.40 |
| NASDAQ | 11251.19 | -3.61 |
| ASX 200 | 6650.60 | 0.44 |
| Commodities | Level | Change (%) |
| Iron Ore | 108.50 | 0.93 |
| Gold | 1708.30 | 0.15 |
| Brent Crude oil | 99.10 | -0.47 |