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 – | Company Gross Operating Profits (QoQ) (Q2) | ||||
| Retail Sales (MoM) | |||||
| China – | Caixin Services PMI (Aug) | ||||
| Eurozone – | Services PMI (Aug) | ||||
| Retail Sales (MoM) (Jul) | |||||
Macro Report
With traders shifting their money out of risk assets due to growing economic and inflationary concerns, global markets ended the last week with steep losses.
Meanwhile, in the United States, the Non-Farm Payroll showed unexpected data, with hiring increasing more than forecasted in August. A gain of 315,000 jobs, slightly above the 300,000 predicted. However, wages did not increase as much as predicted and were perceived as encouraging for the inflation outlook.
Last week, the Aussie dollar declined around 1% on lower commodity prices with iron ore prices in China falling by almost 10%. China remains a significant headwind for the Aussie dollar due to lockdowns in Chengdu, a major industrial city in China.
Looking forward, the Reserve Bank of Australia (RBA) is set to deliver its interest rate decision tomorrow. While markets anticipate a 50-basis point rate hike, bringing the Official Cash Rate to 2.35%, bets for continued aggression from the country’s central bank have eased. This comes about even though Australia’s inflation print is still significantly above the 2-3% target at 6.1%.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6797 | -0.22 |
| AUD/JPY | 95.4170 | -0.09 |
| AUD/CNH | 4.6977 | -0.18 |
| DXY | 109.8720 | 0.31 |
| Rates | Yield (%) | Change |
| US 10 Year | 3.19 | -0.070 |
| Aus 10 year | 3.63 | -0.006 |
| Equities | Level | Change (%) |
| S&P 500 | 3,924.26 | -1.07 |
| NASDAQ | 11,630.86 | -1.31 |
| ASX 200 | 6,828.71 | -0.25 |
| Commodities | Level | Change (%) |
| Iron Ore | 98.00 | -1.01 |
| Gold | 1,721.70 | -0.05 |
| Brent Crude oil | 94.38 | 1.46 |