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 – Food Prices (MoM)
New Zealand – Performance Services Index
Macro Report
Markets faced another evening of wild swings as participants accessed both geopolitical developments as well as pondering the upcoming Fed Policy amid an increase in rates.
Ukrainian President Volodymyr Zelenskiy briefly spooked markets with what his office later said was meant to be a sarcastic comment about the rest of the world predicting a date for an attack by Russia. Vladimir Putin’s top diplomat, meanwhile, urged the Russian president to continue talks with the West, with negotiation options “far from exhausted.”
Meanwhile, St. Louis Federal Reserve president James Bullard restated his call for a full percentage point of rate hikes by July, saying that the central bank’s “credibility is on the line” in its battle against rising prices.
Major currencies were mixed against the US dollar in European and US trade. The Aussie dollar rose from near US70.86 cents to US71.42 cents and was near US71.20 cents in afternoon US trade. The Euro fell from highs near US$1.1350 to around US$1.1280 and was near US$1.1295 in afternoon US trade.
US treasuries were weaker on Monday (yields higher), 1. US 10-year yields rose by 5 points to 2.00%. US 2-year yields rose by 6 points to 1.58%.
European equity markets were weaker across the board, with Ukraine conflict simmering away. Companies with the greatest exposure to Russia taking the biggest hit. US markets closed weaker, moving lower after U.S. Secretary of State Antony Blinken announced the relocation of U.S. diplomatic operations to western Ukraine, in a possible sign of an imminent Russian invasion.
In US economic data, consumer inflation expectations fell from 6% to 5.8% in January (survey: 6.3%).
Ahead, In Australia minutes of the last Reserve Bank Board meeting are issued with weekly consumer sentiment. In the US, the Empire State manufacturing index is released with data on producer prices.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7125 | -0.17 |
| AUD/JPY | 82.338 | -0.04 |
| AUD/CNH | 4.5298 | -0.27 |
| DXY | 96.3400 | 0.27 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.995 | 0.06 |
| Aus 10 year | 2.21 | 0.06 |
| Equities | Level | Change (%) |
| S&P 500 | 4402 | -0.38 |
| NASDAQ | 14269 | 0.10 |
| ASX 200 | 7244 | 0.37 |
| Commodities | Level | Change (%) |
| Iron Ore | 135.87 | -0.88 |
| Gold | 1871.77 | 0.70 |
| Brent Crude oil | 96.03 | 1.68 |