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
Australia – Trade Balance
Australia – Building Approvals (-3% MoM expected)
Macro Report
Major currencies were mixed against the US dollar in European and US trade. The Aussie dollar rose from lows near US72.45 cents to US73.05 cents and was near highs in afternoon US trade. The Euro rose from lows near US$1.1058 to highs near US$1.1140 and was near US$1.1130 in afternoon US trade.
Overnight saw comments from Fed Chair Jeremy Powell that he will back a quarter point rate increase when the Fed meets March 15-16, effectively putting to rest debate over starting a post-pandemic round of rate hikes with a larger than usual half-point increase. Whilst making comments that the central bank would ‘carefully’ begin raising rates, he also made mention of the current Ukraine situation, calling the Russian invasion of Ukraine “a game changer” that could have unpredictable consequences and that “There are events yet to come and we don’t know what the real effect on the U.S. economy will be”.
Meanwhile, the Ukraine situation continued to unfold. Russia claimed to have captured the port city of Kherson. Ukraine said it will take part in a second round of talks with Russia. The United Nations General Assembly denounced the Russian Invasion. And the US weighted further sanctions and restriction on Russian imports.
In US economic data, ADP reported that private sector employment rose by 475,000 in February (survey: 388,000). According to the latest Beige Book, the US economy expanded at a modest to moderate pace from January through mid February while inflation pressures remained high and employers continued to struggle to find workers.
US treasuries retreated, with yields increasing. A risk on mood was also underscored by global equities, with indices in Europe and the US trading higher. The pan-European STOXX 600
index rose by 0.9%, and the S&P 500 index rose by 1.9%. Global oil prices rose on Wednesday. OPEC+ oil producers stuck to the long-term plan, lifting output in April by 400,000 barrels per day.
Ahead, in Australia, building approvals, new vehicle sales and international trade data are released. In the US, the Challenger job cuts series is released with weekly jobless claims, surveys of the services sector and factory orders.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7297 | 0.00 |
| AUD/JPY | 84.3 | 0.00 |
| AUD/CNH | 4.6123 | -0.04 |
| DXY | 97.3510 | -0.05 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.877 | 0.15 |
| Aus 10 year | 2.185 | 0.11 |
| Equities | Level | Change (%) |
| S&P 500 | 4387 | 1.86 |
| NASDAQ | 14244 | 1.70 |
| ASX 200 | 7117 | 0.28 |
| Commodities | Level | Change (%) |
| Iron Ore | 132.07 | 4.61 |
| Gold | 1928.7 | -0.92 |
| Brent Crude oil | 114.55 | 8.86 |