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 – Retail Sales (7.8% expected QoQ)
Indonesia – GDP (1.01% expected QoQ)
Macro Report
Friday night saw a strong outperformance in US employment with a growth of 467k vs 125k expected. This outperformance saw rates increase ~ 11bp with the market now pricing in 5.5 hikes into US rates this year alone. The market is currently awaiting US CPI figures on Friday to provide more clues as to whether the Fed hike interest rates by 0.25% or 0.50%.
The commodities market also rallied strongly with Oil now up to 92.30 per barrel and precious metals continue to rally. Iron ore also experienced a strong surge seeing a 3.5% jump as well. The equity indexes were initially trade cheaper in the North American session but the NASDAQ surged late in the trading session to close 1.3% higher.
The currencies had an appetite for USD given last weeks sell off which saw the AUD sell off sharply from 0.7140 in Asian close to a low of 0.7052 after US employment. Currency continues to trade with great uncertainty but is seemingly following technical trendlines as the AUDUSD failed to break through 0.7162 50 Day Moving Average before the sharp sell off.
DXY also bounced off the 100 Day Moving Average of 95.195 as well after 4 sessions of aggressive selling.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7075 | 0.04 |
| AUD/JPY | 81.547 | 0.02 |
| AUD/CNH | 4.5016 | -0.02 |
| DXY | 95.4850 | 0.11 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.909 | 0.08 |
| Aus 10 year | 2.045 | 0.07 |
| Equities | Level | Change (%) |
| S&P 500 | 4501 | 0.52 |
| NASDAQ | 14694 | 1.33 |
| ASX 200 | 7120 | 0.60 |
| Commodities | Level | Change (%) |
| Iron Ore | 127.33 | -0.69 |
| Gold | 1808.28 | 0.19 |
| Brent Crude oil | 93.27 | 1.31 |