Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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Key Data Being Released Today
| China | – | CPI (YoY) (Sep) | ||||
| PPI (YoY) (Sep) | ||||||
| Exports (YoY) (Sep) | ||||||
| Imports (YoY) (Sep) | ||||||
| Trade Balance (USD) (Sep) | ||||||
| Eurozone | – | Trade Balance (Aug) | ||||
| United States | – | Core Retail Sales (MoM) (Sep) | ||||
| Export Price Index (MoM) (Sep) | ||||||
| Import Price Index (MoM) (Sep) | ||||||
| Retail Sales (MoM) (Sep) | ||||||
Macro Report
CPI report released overnight indicated that the US inflation rate has hit 8.2% year over year, compared to a prior reading of 8.3%. Despite the Fed’s efforts to bring down inflation with its sharp hikes, the pace of price increases is still at multidecade highs. The Consumer Price Index rose by 0.4% in September compared to a predicted 0.2%, after gaining 0.1% the prior month. Following hotter-than-expected data, market expectations for another jumbo 75-basis point hike solidified.
Disappointing data caused US equities to seesaw on expectations for continued interest rate hikes from the Fed. With these expectations come worries regarding a global recession. The S&P 500 declined by more than 2% before ending the session with a 2.60% gain.
The Aussie dollar initially plummeted by 1.5% following the data and hit a low of 0.6170. A reversal was later seen for the AUD/USD pair, as it returned to the 0.6300 level but has slightly pulled down to 0.6297 at the moment of writing. As for the US dollar, the DXY index appreciated to 113.737 before retracing to the 112.00 level.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6297 | -0.02 | |
| AUD/JPY | 92.7190 | 0.01 | |
| AUD/CNH | 4.5168 | 0.38 | |
| DXY | 112.3630 | -0.84 | |
| Rates | Yield (%) | Change | |
| US 10 Year | 3.94 | 1.22 | |
| Aus 10 Year | 4.04 | 1.35 | |
| Equities | Level | Change (%) | |
| S&P 500 | 3,669.91 | 2.60 | |
| NASDAQ | 10,649.15 | 2.23 | |
| ASX 200 | 6,642.60 | -0.07 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 96.50 | -1.03 | |
| Gold | 1,677.00 | -0.03 | |
| Brent Crude oil | 94.61 | 2.34 |