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 | – | Exports (YoY) (Sep) | ||||
| Imports (YoY) (Sep) | ||||||
| Trade Balance (USD) (Sep) | ||||||
| Japan | – | Industrial Production (MoM) (Aug) | ||||
| Tertiary Industry Activity Index (MoM) | ||||||
| United States | – | NY Empire State Manufacturing Index (Oct) | ||||
Macro Report
With last week’s release of hotter-than-expected US CPI keeping the Fed on its hawkish path, the US dollar registered another week of gains. The DXY index closed the previous week at 113.3110 on bolstered rate hike bets which underpinned a surge in Treasury yields. The 2-year yield rallied to a new 15-year high above 4.50% and 10-year yield now exceeds 4%. If the US dollar bulls commit, we expect investor sentiment to depress further, weighing heavily on the risk-sensitive Aussie dollar.
This week’s key macroeconomic data releases include China’s third-quarter GDP data. China’s economy is expected to expand by 3.4% from a year earlier. Since Q2, where year-on-year GDP printed 0.4%, economic data have shown improvements with easing of Covid-19 restrictions. However, the country’s economic growth outlook and recovery hinges on its strict zero-Covid policy. Additionally, this week brings us UK’s inflation print for September and Aussie employment data.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6211 | 0.19 | |
| AUD/JPY | 92.3480 | 0.12 | |
| AUD/CNH | 4.4769 | -0.04 | |
| DXY | 113.1670 | -0.13 | |
| Rates | Yield (%) | Change | |
| US 10 Year | 4.02 | 0.41 | |
| Aus 10 Year | 4.05 | 1.22 | |
| Equities | Level | Change (%) | |
| S&P 500 | 3,583.07 | -2.37 | |
| NASDAQ | 10,321.39 | -3.08 | |
| ASX 200 | 6,758.80 | 1.75 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 96.52 | 0 | |
| Gold | 1,648.90 | -1.68 | |
| Brent Crude oil | 91.63 | -3.11 |