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.
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
Australia – Wage Price Index (2.4% YoY expected)
New Zealand – RBNZ Official Cash Rate (1% expected)
Singapore – CPI (4.2% YoY expected)
Hong Kong – GDP (4.8% YoY expected)
Macro Report
Despite the geopolitical tensions in rising between Russia and the Ukraine, risk currencies were in demand overnight with safe haven currencies such as the JPY and CHF much weaker. With sanctions being placed to disincentive invading with heavy economic implications. Crude and Brent Oil continued their rally with Brent almost reaching $100 per barrel as tensions rise.
Equity markets didn’t enjoy the headlines or the potential issues and continued to nose dive with the NASDAQ down another 1% overnight. However, the rates markets continue to sell off (higher yield) which added some confusion and potentially frustration in the market. It is quite apparent that there are positioning issues that are creating some of these unexpected moves as market participants are stopping out.
The USD Index is basically unchanged since yesterday but had some volatility as the market was looking for a flight to safety but never really had the conviction to load up on the position.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.722 | 0.42 |
| AUD/JPY | 83.071 | 0.70 |
| AUD/CNH | 4.5661 | 0.40 |
| DXY | 96.0710 | -0.00 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.934 | 0.01 |
| Aus 10 year | 2.27 | 0.06 |
| Equities | Level | Change (%) |
| S&P 500 | 4305 | -1.01 |
| NASDAQ | 13871 | -0.99 |
| ASX 200 | 7161 | -1.00 |
| Commodities | Level | Change (%) |
| Iron Ore | 120.04 | 0.82 |
| Gold | 1899.4 | -0.35 |
| Brent Crude oil | 96.32 | 1.01 |