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 – Business Confidence
Japan – Trade Balance December(-¥200.7b expected)
Japan – Labor Cash Earnings December(+0.9% expected)
Macro Report
Overnight U.S equities pushed higher as market sentiment shifted towards a Risk On setting driven by tech and financial stocks. Yields were also higher across the board with the US 10 year peaking at 1.97% which last traded in 2019. Oil finally took a breather and sold off 2%, whilst Gold continued to march higher.
In other news, French President Macron met with Ukrainian President Zelensky to discuss solutions to move forward, however there was little details on what those steps involve. In further de-escalation, Russia announced that their troops currently stationed in Belarus would leave following the completion of the war games exercises.
The EURUSD underperformed against its G10 peers overnight as ECB Member Villeroy highlighted that the current inflation should be temporary and the market has overreacted, i.e. priced in too much for a hike.
USD index continued to recover following end of last weeks sell off and has bounced off the 100 day moving average.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7144 | 0.24 |
| AUD/JPY | 82.535 | 0.63 |
| AUD/CNH | 4.5482 | 0.32 |
| DXY | 95.5970 | 0.21 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.958 | 0.04 |
| Aus 10 year | 2.15 | 0.02 |
| Equities | Level | Change (%) |
| S&P 500 | 4522 | 0.84 |
| NASDAQ | 14747 | 1.21 |
| ASX 200 | 7187 | 1.07 |
| Commodities | Level | Change (%) |
| Iron Ore | 132.5 | 0.00 |
| Gold | 1826.2 | 0.32 |
| Brent Crude oil | 91 | -1.62 |