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 – | Adjusted Current Account | ||||
| Current Account n.s.a. (Jun) | |||||
| New Zealand – | Inflation Expectations (QoQ) | ||||
Macro Report
US equities ended mixed, with the S&P 500 and Nasdaq composite down 0.16% and 0.50%, respectively.
Commodities-wise, prices are crumbling, with a fall in key commodities such as crude oil and iron ore. The US oil benchmark, West Texas Intermediate (WTI), has fallen below the $90USD per barrel level. While commodity prices are signalling peak inflation and weakening demand, the US jobs report reflects a different view on the economy’s health.
On Friday, the US Nonfarm payrolls (NFP) showed a print of 528k, significantly higher than the forecasted 250k and former print of 398k. US unemployment rate also came in slightly lower at 3.5%, against market expectations of 3.6%. A resilient US labour market showed support for the US dollar against other major currencies while also signalling that the economy could withstand more rate hikes.
On the Australian front, after three consecutive official cash rate hikes of 50 basis points, the RBA is likely to change its stance on interest rates and, according to Wells Fargo, “revert to a steady pace of consecutive 25 basis points” rate increases at its next meeting in September and following. This mildly dovish tilt may suggest the RBA believes it is now slightly further along the monetary tightening path. Meanwhile, compared to the Fed’s pace of policy tightening, this may restrict Aussie bulls.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6907 | -0.06 |
| AUD/JPY | 93.2810 | -0.08 |
| AUD/CNH | 4.67095 | -0.21 |
| DXY | 106.6610 | 0.04 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.83 | -0.033 |
| Aus 10 year | 3.21 | 0.05 |
| Equities | Level | Change (%) |
| S&P 500 | 4145.19 | -0.16 |
| NASDAQ | 12657.55 | -0.50 |
| ASX 200 | 7015.60 | 0.58 |
| Commodities | Level | Change (%) |
| Iron Ore | 111.50 | -0.45 |
| Gold (Comex) | 1790.00 | -0.07 |
| Brent Crude oil | 93.97 | -1.00 |