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
Japan – Retail Sales (-0.3% MoM expected) (Feb)
New Zealand – Business Confidence (10.5%)
Thailand – Benchmark Interest Rate (+0.50% expected)
Macro Report
The Australian Government announced their budget last night including payments to help combat the rising cost of living. Other items to take note of are the budget deficit is forecast to be AUD $78b in 2022-23 whilst assuming the iron ore drops to $55/ton in Q3 2022. Furthermore, unemployment rate is expected to drop to 3.75% in Q3 2022.
In more global news, markets reacted positively to headlines about Ukraine and Russia tensions de-escalating and military operations were winding back. Equities were a sea of green whilst commodities were all lower with oil once again approaching the $100/barrel mark again.
Yields continue to rise, particularly in the short end for the US as the yield curve continues to invert as concerns grow of a potential recession if rates are raised too quickly which will impact growth.
USD sold off quite heavily with its biggest decline in 3 weeks whilst its G10 trading peers continue to advance higher.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
| Currencies | Level | Change (%) |
| AUD/USD | 0.7506 | -0.04 |
| AUD/JPY | 92.245 | -0.02 |
| AUD/CNH | 4.7847 | -0.01 |
| DXY | 98.4170 | -0.68 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 2.394 | -0.06 |
| Aus 10 year | 2.93 | -0.03 |
| Equities | Level | Change (%) |
| S&P 500 | 4632 | 1.23 |
| NASDAQ | 15239 | 1.68 |
| ASX 200 | 7464 | 0.70 |
| Commodities | Level | Change (%) |
| Iron Ore | 138.25 | 2.17 |
| Gold | 1919.37 | -0.00 |
| Brent Crude oil | 111.24 | -1.10 |