CAFX Market Update 22/12/2022

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

Macro Report

The AUD/USD pair has reclaimed the 0.6700 figure, courtesy of a weakened US dollar. The Greenback has been holding losses following the BoJ’s surprise move to widen the band under its Yield Curve Control (YCC) policy. Moreover, the DXY is cautious ahead of tomorrow’s US Personal Consumption Expenditures (PCE) price index. The US dollar Index (DXY) is battling the 104.00 mark, currently trading at 103.892.

ASX set to rise following a rally on Wall Street aided by upbeat quarterly earnings from Nike and FedEx, as well as enhanced consumer sentiment.

The Energy Information Administration (EIA) reported Crude Oil inventories in the early hours of today. Data printed a larger-than-expected drop of 5.9 million barrels from an estimated 1.7 million fall, lifting Oil prices across the board.

Markets will be eyeing the UK’s third-quarter GDP, likely confirming that the British economy contracted by 0.2% in the three months to September. Up for release on the US front is the GDP and PCE price index. The Fed’s preferred inflation gauge, core PCE, which excludes volatile food and energy prices, is expected to show a modest decline to rise by 4.6% in the third quarter, down from a 4.7% advance in the previous three-month period. If the overnight PCE data offers a positive surprise, it may favour the US bulls.

Key Data Being Released

United Kingdom GDP (YoY) (Q3)
United States Core PCE Prices (Q3)
GDP (QoQ) (Q3)
GDP Price Index (QoQ) (Q3)
Initial Jobless Claims
PCE Prices (Q3)

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6709  0.03
AUD/JPY 88.7670 -0.09
AUD/CNH 4.6821  0.76
DXY 103.892  0.11
Rates Yield (%) Change
US 10 Yr 3.67  0.15
Aus 10 Yr 3.73  0.06
Equities Level Change (%)
S&P 500 3,878.44  1.49
NASDAQ 10,709.37  1.54
ASX 200 7,115.10  1.29
Commodities Level Change (%)
Iron Ore 110.50  0.45
Gold 1,824.00 -0.08
Brent Crude 92.27  2.85

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