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
Eurozone – ECB Rate Decision
US – CPI (Forecast 7.9%, previous 7.5%)
Macro Report
Risk-on sentiment dominated overnight, with Equities in Europe and the US rallying strongly, following three straight days of losses. European STOXX 600 index rose by 4.7%, notching its best day since March 2020. . The S&P500 index lifted 2.6%, its best performance in one day since June 2020.
Oil prices posted their largest decline since the start of the pandemic, retreating from the peaks scaled over the last week after OPEC member, the United Arab Emirates, pledged to boost its oil supply.
The yield on 10-year Treasuries advanced nine basis points to 1.94% and the Germany’s 10-year yield advanced 10 basis points to 0.22%.
Major currencies were stronger against the US dollar in European and US trade. The Aussie dollar rose from lows near US72.73 cents to highs near US73.36 cents and was near US73.25 cents at the US close. The Euro rose from lows near US$1.0909 to highs near US$1.1094 and was near US$1.1065 at the US close.
Helping the rally were reports that Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky may be tentatively opening themselves to compromises that might halt the 12-day-old war.
In US economic data, JOLTS job openings fell from a record 11.448 million to 11.263 million in January (survey: 10.95m). MBA mortgage applications rose by 8.5% last week.
Ahead, in the US consumer prices, where CPI is expected to pick up from 7.5% to 7.9%, core CPI from 6.0% to 6.4%. In Europe we have the ECB interest rate decision.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.732 | -0.04 |
| AUD/JPY | 84.801 | -0.03 |
| AUD/CNH | 4.6284 | -0.03 |
| DXY | 97.9650 | -1.11 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.953 | 0.11 |
| Aus 10 year | 2.34 | 0.02 |
| Equities | Level | Change (%) |
| S&P 500 | 4278 | 2.57 |
| NASDAQ | 13742 | 3.58 |
| ASX 200 | 7053 | 1.04 |
| Commodities | Level | Change (%) |
| Iron Ore | 145.23 | -1.45 |
| Gold | 1991.83 | 0.00 |
| Brent Crude oil | 112.21 | -12.32 |