Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com
MACRO REPORT
The Aussie dollar has reversed Tuesday’s losses, soaring over 2% overnight against the US dollar amid broad USD sell-off, optimism in the equities space and earlier headlines from China. With news that China is considering a partial end to its two-year ban on imports of Australian coal, renewed trade optimism drove the AUD/USD pair to run above its 200-day moving average, seen at 0.6850, for the first time since April 2022.
The release of the FOMC Meeting Minutes from the Fed’s Dec policy meeting showed central bank officials are still committed to controlling inflation as they emphasised the importance of holding rates at high levels until more progress is made. Policymakers indicated a possible shift to a quarter-percentage-point increase at the upcoming 31 Jan – 1 Feb meeting as the committee expressed the need to retain ‘flexibility’.
Next of relevance for the AUD/USD pair remains the ADP Nonfarm Employment Change (Dec) and the US weekly Unemployment Claims data scheduled to release overnight, which will likely influence the US Dollar valuations.
KEY DATA TO WATCH
| China | – | Caixin Services PMI (Dec) | |||
| United Kingdom | – | Composite PMI (Dec) | |||
| Services PMI (Dec) | |||||
| United States | – | ADP Nonfarm Employment Change (Dec) | |||
| Exports | |||||
| Imports | |||||
| Initial Jobless Claims | |||||
| Trade Balance (Nov) | |||||
| S&P Global Composite PMI (Dec) | |||||
| Services PMI (Dec) | |||||
| Crude Oil Inventories | |||||