CAFX Market Update 11/07/2022

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.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

Key Data Being Released Today

China                         – New Loans

Macro Report

The US dollar maintains its strength despite improvement in sentiment, and threats from high inflation and slowing economic growth. A surprisingly solid US employment report on Friday night erased relieved some fears. The country added 372k jobs in the month of June. Although significantly higher than the forecasted 268k, data released was slightly lower than the prior print of 384k. This data reinforced a drop in US Treasuries, leaving the 10-year yield above 3% but still below the 2-year yield. As inversions along the curve remain, this proves signs of recession risk and souring risk appetite.

The commodity-linked Australian dollar has managed to stay afloat above the 68-cent level after recently plummeting post FOMC meeting minutes.

Commodity prices remain volatile, with oil prices bouncing back more than 2%, and gold has pulled back once again to USD1740 per ounce level. A comeback for commodity prices could give the Aussie dollar strength to bounce.

Looking forward, employment data for Australia will be released on Thursday. The Employment Change for the month of June is estimated to be severely lower than the prior release of 60.6K at 25k.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6844 -0.25
AUD/JPY 93.3130  0.01
AUD/CNH 4.5727 -0.38
DXY 107.082  0.07
Rates Yield (%) Change
US 10 Year 3.099 0.015
Aus 10 year 2.556 0.075
Equities Level Change (%)
S&P 500 3,899 -0.08
NASDAQ 11,635  0.12
ASX 200 6,657 -0.31
Commodities Level Change (%)
Iron Ore 115.00 0.44
Gold 1741.69  0.08
Brent Crude oil 106.74 -0.07

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