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
New Zealand – Unemployment rate(3.2%)
Australia – Retail Sales (0.5% MoM expected)
Macro Report
Markets were fairly benign overnight in the lead up to the FOMC tonight. With most developed markets now all on the same hiking pathway to temper inflation, we had Central Banks from the US and Canada reiterating this course of action however, the rate and pace was flexible and will be adjusted to market conditions.
Rates were grinding higher overnight with the US 10yr yield breaching 3% once again only to sell off again ahead of the FOMC. Given the unexpected magnitude of a 25bp hike from the RBA yesterday, Aus rates continued to sell off overnight as there is more confidence in direction the RBA will take.
Equities markets traded sideways as participants are likely to have squared up positions ahead of the FOMC. Commodities was more or less the same story however, iron ore found some weakness as the lockdowns in China persist.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
| Currencies | Level | Change (%) |
| AUD/USD | 0.7102 | 0.08 |
| AUD/JPY | 92.41 | 0.06 |
| AUD/CNH | 4.7197 | 0.07 |
| DXY | 103.4650 | -0.27 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 2.971 | -0.01 |
| Aus 10 year | 3.475 | 0.04 |
| Equities | Level | Change (%) |
| S&P 500 | 4175 | 0.48 |
| NASDAQ | 13090 | 0.11 |
| ASX 200 | 7316 | -0.42 |
| Commodities | Level | Change (%) |
| Iron Ore | 130.43 | 0.66 |
| Gold | 1869.46 | 0.06 |
| Brent Crude oil | 104.97 | -2.43 |