CAFX Market Update 14/11/2022

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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

Eurozone Industrial Production (MoM) (Sep)
United States OPEC Monthly Report

Macro Report

The Aussie dollar jumped to above the 0.6700 level during last week’s trading, its highest level in almost two months. The AUD/USD pair is trading at 0.66882 at the time of writing on the back of improved market sentiment and a sinking US dollar following a cooler-than-expected US CPI print.

US CPI report revealed headline inflation rose by 7.7% (YoY) against the forecasted 7.9% and previous month’s print of 8.2%. With this marking the fourth consecutive decline since peaking in June at 9.1%, markets are now speculating smaller rate hikes from the Fed and a lower terminal rate than previously forecasted.

On the contrary, the Aussie CPI saw an acceleration of 1.8% in the September quarter and 7.3% annually, both figures printing higher than forecasts. In response, speculation has grown that the Official Cash Rate may end up being higher and remain at that level for longer, than otherwise if the RBA had continued down a more aggressive path.

As far as economic data is concerned this week, retail sales for the US, China and UK will take centre stage. For the US, we will also see PPI data on Wednesday, which may undermine the notion of a Fed pivot if it reads strongly. Additionally, China will publish October data on investment, industrial production, and unemployment tomorrow.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6675 -0.42
AUD/JPY 93.3000  0.23
AUD/CNH 4.7311  0.16
DXY 106.2920 -1.77
Rates Yield (%) Change
US 10 Year 3.81  0.00
Aus 10 Year 3.72  1.75
Equities Level Change (%)
S&P 500 3,992.93  0.92
NASDAQ 11,323.33  1.88
ASX 200 7,158.00  2.79
Commodities Level Change (%)
Iron Ore 93.50  4.47
Gold 1,769.40 -0.90
Brent Crude oil 95.99  2.48

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