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 – Statement of Monetary Policy
South Korea – January CPI (0.4% MoM expected)
US – Unemployment rate ( 3.9% expected)
Macro Report
Overnight the Bank of England(BoE) hiked interest rates by 0.25% to 0.5% as widely expected with a note that 4 dissenters voted for a 0.5% hike instead. This gave the market a very hawkish tilt which saw GBPUSD rally immediately after. The BoE also noted their intention to unwind their holdings of corporate bonds purchases.
Following on from the BoE, we had the European Central Bank(ECB) hold rates steady but ECB President Lagarde spoke afterwards in a press conference is what was a hawkish tone with particular focus on the risk of rising inflation.
Rates market was all higher in yield as the world is accepting inflation is filtering through most economies and record low rates are not here forever.
All off this culminated in a weak USD sentiment throughout the market as risk currencies slowly appreciated throughout the session. However, what really exacerbated the moves was Meta’s (formerly Facebook) share price which collapsed 25% which is recorded as the biggest value wipeout in market history (~USD 253bio USD). Equity markets, particularly the NASDAQ were a sea of red as a result and this further accelerated the USD sell off.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7141 | 0.04 |
| AUD/JPY | 82.096 | 0.53 |
| AUD/CNH | 4.5368 | 0.01 |
| DXY | 95.3480 | -0.61 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.840 | 0.06 |
| Aus 10 year | 1.95 | 0.07 |
| Equities | Level | Change (%) |
| S&P 500 | 4477 | -2.44 |
| NASDAQ | 14501 | -4.22 |
| ASX 200 | 7078 | -0.14 |
| Commodities | Level | Change (%) |
| Iron Ore | 127.33 | -0.69 |
| Gold | 1805.05 | -0.11 |
| Brent Crude oil | 91.13 | 1.31 |