Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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Key Data Being Released Today
| Australia | – | Building Approvals (MoM) (Sep) | |||
| Home Loans (MoM) | |||||
| Eurozone | – | Manufacturing PMI (Oct) | |||
| United States | – | ADP Nonfarm Employment Change (Oct) | |||
Macro Report
The Aussie dollar witnessed a steep drop yesterday following RBA’s interest rate decision. As projected by markets, the RBA delivered a second consecutive 25 basis point hike, bringing its Official Cash Rate (OCR) to 2.85%.
The central bank’s shift to smaller quarter-point hikes has driven up the interest rate differentials between the US and Australia. With the Fed forecasted to implement another 75-basis point rate hike overnight, the divergence grows and may continue to work against the Aussie dollar.
The AUD/USD pair opened this morning at 0.64557 but has since toppled down to 0.6394 at the time of writing on renewed fed rate hike bets and the return of dollar strength.
With September job opening data releasing better-than-expected figures, odds have increased for the Fed to continue its aggressive tightening path to cool the overall economy and bring down inflation. Job openings increased by 437,000, brining the total number to 10.717 million by the end of September. Additionally, the Institute for Supply Management’s (ISM) Manufacturing PMI printed at 50.2 in October, although better than the forecasted figure of 50.0 and down from prior month’s 50.9, data remains at a two-year low level.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6394 | -0.02 | |
| AUD/JPY | 94.778 | -0.02 | |
| AUD/CNH | 4.6669 | -0.42 | |
| DXY | 111.4810 | -0.04 | |
| Rates | Yield (%) | Change | |
| US 10 Year | 4.04 | -0.71 | |
| Aus 10 Year | 3.76 | -0.13 | |
| Equities | Level | Change (%) | |
| S&P 500 | 3,901.06 | 2.46 | |
| NASDAQ | 11,102.45 | 2.87 | |
| ASX 200 | 6,861.90 | 1.12 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 92.43 | -0.62 | |
| Gold | 1,647.96 | 0.55 | |
| Brent Crude oil | 94.77 | 2.11 |