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 – | GDP (QoQ) (Q2) | ||||
| China – | Exports (YoY) (Aug) | ||||
| Imports (YoY) (Aug) | |||||
| Trade Balance (USD) (Aug) | |||||
| Eurozone – | GDP (QoQ) (Q2) | ||||
| United States – | Exports | ||||
| Imports | |||||
| Trade Balance (Jul) | |||||
Macro Report
The AUD/USD currency pair plummeted to monthly lows following the Reserve Bank of Australia’s announced rate hike. As expected, the RBA increased the official cash rate (OCR) by 50 basis points to 2.35%. Such an anticipated event seemingly created a limited reaction in terms of influencing the exchange rate, as there was no material change to the markets’ outlook for Australia’s monetary policy path.
On the strength of the US dollar, the AUD/USD has made a sharp decline, currently trading at 0.6725 at the time of writing. That being said, Australia’s Gross Domestic Product (GDP) report may encourage the RBA to take a more aggressive stance. The Australian economy is expected to expand by 3.5% in the second quarter of 2022, following a growth of 3.3% per annum in the previous quarter. With the recent downward trend in the Aussie dollar, the currency likely to struggle should the RBA maintain its current approach to combating inflation.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6725 | -0.15 |
| AUD/JPY | 96.2920 | 0.11 |
| AUD/CNH | 4.6877 | -0.04 |
| DXY | 110.3040 | 0.08 |
| Rates | Yield (%) | Change |
| US 10 Year | 3.33 | 0.151 |
| Aus 10 Year | 3.72 | 0.069 |
| Equities | Level | Change (%) |
| S&P 500 | 3,908.19 | -0.41 |
| NASDAQ | 11,544.91 | -0.74 |
| ASX 200 | 6,795.10 | -0.46 |
| Commodities | Level | Change (%) |
| Iron Ore | 99.50 | -1.49 |
| Gold | 1713.30 | 0.02 |
| Brent Crude oil | 92.73 | -0.11 |