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
| United Kingdom – | GDP (MoM) | ||||
| Industrial Production (MoM) (Jul) | |||||
| Manufacturing Production (MoM) (Jul) | |||||
| Trade Balance (Jul) | |||||
Macro Report
With the US Dollar Index (DXY) down 0.16% at the time of writing, the Euro lifted above parity while the Aussie dollar also managed to cross above the 68-cent level.
In focus this week is the US Consumer Price Index (CPI). Tomorrow’s CPI data is expected to show an 8% increase in the overall consumer price index from the same month last year. While dropping from a print of 8.5% the prior month, the US CPI figure remains elevated historically. Removing food and energy prices, markets predict an increase in Core CPI from a previous print of 5.9% to 6.1%. With a fall in CPI primarily owed to lower energy prices and inflation remaining well above the central bank’s target, the Fed Officials will likely remain firm on implementing a 75-basis point rate hike in September.
As market participants increased bets for a steep 75-basis point hike in the next Fed meeting, 10-year treasury yields lifted further, currently sitting just above the 3.3% level.
Meanwhile, in Australia, the Australia Bureau of Statistics (ABS) will report August employment data on Thursday.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6845 | 0.06 |
| AUD/JPY | 97.6670 | 0.09 |
| AUD/CNH | 4.7379 | -0.07 |
| DXY | 108.8270 | -0.16 |
| Rates | Yield (%) | Change |
| US 10 Year | 3.31 | 0.029 |
| Aus 10 Year | 3.54 | 0.024 |
| Equities | Level | Change (%) |
| S&P 500 | 4,067.36 | 1.53 |
| NASDAQ | 12,112.31 | 2.11 |
| ASX 200 | 6,894.20 | 0.66 |
| Commodities | Level | Change (%) |
| Iron Ore | 104.50 | 2.95 |
| Gold | 1,728.80 | 0.01 |
| Brent Crude oil | 92.74 | -0.11 |