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
Macro Report
Risk sentiment continued to lift last week; however, the Australian dollar failed to push through the 70-cent level. The AUD may continue to rise this week, but the currency’s trajectory will depend highly on the Reserve Bank of Australia’s rate decision tomorrow.
Markets are predicting another 50 basis-point rate hike, bringing the cash rate to 1.85%. This was after bets on a super-sized interest rate increase were abandoned following Australia’s annual Consumer Price Index (CPI) print of 6.1%, slightly lower than the estimate of 6.3%.
US Dollar weakened overall as traders moved into Treasuries which saw bond markets tighten, pushing the 10-year treasury yield lower to now a 2.66% level.
Commodities-wise, oil prices fell after initially lifting. Brent crude remains slightly above the $100USD per barrel level. Gold took advantage of the US dollar weakness and finished with a fresh new weekly high, now sitting above the $1760USD per ounce level.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6978 | -0.10 |
| AUD/JPY | 93.0250 | -0.10 |
| AUD/CNH | 4.7027 | -0.16 |
| DXY | 106.0170 | 0.11 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.66 | -0.024 |
| Aus 10 year | 3.05 | -0.149 |
| Equities | Level | Change (%) |
| S&P 500 | 4130.29 | 1.42 |
| NASDAQ | 12390.69 | 1.88 |
| ASX 200 | 6945.15 | 0.80 |
| Commodities | Level | Change (%) |
| Iron Ore | 117.50 | -0.50 |
| Gold | 1777.90 | 0.23 |
| Brent Crude oil | 103.26 | -0.68 |