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
| New Zealand – | RBNZ Interest Rate Decision | ||||
| China – | Exports (YoY) (Jun) | ||||
| Imports (YoY) (Jun) | |||||
| Trade Balance (USD) (Jun) | |||||
| United States – | Core CPI (MoM) (Jun) | ||||
| CPI (YoY) (Jun) | |||||
Macro Report
The Euro remains stuck at parity with the safe-haven boosted US dollar, as fears grow that the Nord Stream pipeline ferrying Russian gas to Europe will shut down for good. This scenario would lead to the need for gas rationing and risk further sinking the Euro towards a value of 95 cents and breaching parity.
The Aussie dollar held on overnight but remained pressured around multi-month lows on US dollar strength as sour sentiment and global recession stories continue to build.
US Stocks continue to decline amid growing inflation concerns. Commodities also saw a drop as oil prices fell more than 6%, iron ore down by 5%, and gold set a new low at the $1723USD per ounce level.
The Reserve Bank of New Zealand’s rate hike decision is anticipated today, with the consensus predicting a 50-basis point increase bringing the Official Cash Rate (OCR) to 2.5%. Later tonight, the US Labour Department will report the Consumer Price Index (CPI) for June, with estimates that headline inflation, including food and energy, will rise above May’s 8.6% level to 8.8%. This outlook has caused US equities to suffer and the US dollar index (DXY) to rally.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6752 | -0.09 |
| AUD/JPY | 92.4440 | -0.06 |
| AUD/CNH | 4.5437 | -0.07 |
| DXY | 108.0720 | 0.05 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.97 | -0.019 |
| Aus 10 year | 3.38 | -0.029 |
| Equities | Level | Change (%) |
| S&P 500 | 3818.80 | -0.92 |
| NASDAQ | 11264.73 | -0.95 |
| ASX 200 | 6606.30 | 0.06 |
| Commodities | Level | Change (%) |
| Iron Ore | 112.50 | -2.17 |
| Gold | 1723.70 | -0.07 |
| Brent Crude oil | 99.49 | -7.11 |