CAFX Market Update 25/08/2022

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

Eurozone                – ECB Publishes Account of Monetary Policy Meeting
United States         – GDP (QoQ) (Q2)
Initial Jobless Claims

Macro Report

Markets were somewhat mixed overnight, ahead of the Jackson Hole event that will kick-off tonight, with Jerome Powell due to speak later in the week.

US treasuries were weaker on Wednesday, carrying on their recent push higher, with markets now pricing in a peak fed funds rate of 3.8% in March next year, up from the 3.62% several weeks ago.  The expectation of cuts that had been priced into next year have also diminished.

Equity markets rose both in Europe and the US.

Ahead today, the ECB releases minutes from its July Policy meeting.  In the US, Jobless Claim will be released and monitored for any indications that a trend is continuing higher.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6905 -0.01
AUD/JPY 94.69 -0.02
AUD/CNH 4.7467 -0.05
DXY 108.61 -0.01
Rates Yield (%) Change
US 10 Year 3.1060 0.052
Aus 10 year 3.686 0.001
Equities Level Change (%)
S&P 500 4141 0.29
NASDAQ 12432 0.41
ASX 200 6998 0.52
Commodities Level Change (%)
Iron Ore 105.55 -.02
Gold 1764.5 0.19
Brent Crude oil 101.81 1.59

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