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
| Japan | – | Household Spending (MoM) (Aug) | ||||
| Australia | – | RBA Financial Stability Review | ||||
| United Kingdom | – | Halifax House Price Index (YoY) | ||||
| United States | – | Average Hourly Earnings (MoM) (Sep) | ||||
| Nonfarm Payrolls (Sep) | ||||||
| Participation Rate (Sep) | ||||||
| Unemployment Rate (Sep) | ||||||
| Employment Change (Sep) | ||||||
Macro Report
The Aussie dollar took a tumble during yesterday’s trading session on US dollar strength following disappointing trade surplus data, which unexpectedly narrowed on import strength.
The Australian Bureau of Statistics released the Australian Trade balance, which missed the mark posting a surplus of A$8.324 billion versus the expected A$10.100 billion. Monthly imports were up 4.5%, and exports rose by 2.6%. Additionally, Australia posted its AIG Performance of Construction Index, which dropped to 46.5 from 47.9 in August.
Early this morning, the AUD/USD pair bottomed at 0.6388 after retreating further overnight. The pair is currently trading above the 0.6400 level as fragile market sentiment, and the Fed’s reiteration of its hawkish posture continues to benefit the US dollar. Additionally, with the RBA taking the lead on policy loosening, the US and Australian rate differential will only continue to widen and put further pressure on the Aussie dollar.
Today brings several data prints, with the RBA publishing the Financial Stability Review, an assessment of the Australian financial system. Meanwhile, markets are bracing for the all-important US Nonfarm Payrolls. Data is predicted to show a slip to 250k in September from 315K the prior month. Additionally, it is expected that the US unemployment rate will hold at 3.7%.
AUD/USD Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6413 | 0.11 |
| AUD/JPY | 92.9930 | -0.02 |
| AUD/CNH | 4.5367 | -1.04 |
| DXY | 112.2580 | 0.94 |
| Rates | Yield (%) | Change |
| US 10 Year | 3.82 | 0.067 |
| Aus 10 year | 3.85 | 0.092 |
| Equities | Level | Change (%) |
| S&P 500 | 3,744.52 | -1.02 |
| NASDAQ | 11,073.31 | -0.68 |
| ASX 200 | 6,817.52 | 0.03 |
| Commodities | Level | Change (%) |
| Iron Ore | 95.26 | 0.00 |
| Gold | 1,720.90 | 0.01 |
| Brent Crude oil | 94.85 | 1.59 |