Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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Key Data Being Released Today
| Australia | – | Company Gross Operating Profits (QoQ) (Q3) | ||
| Japan | – | Services PMI (Nov) | ||
| Eurozone | – | S&P Global Composite PMI (Nov) | ||
| Services PMI (Nov) | ||||
| Retail Sales (MoM) (Oct) | ||||
| United Kingdom | – | Composite PMI (Nov) | ||
| Services PMI (Nov) | ||||
Macro Report
The Aussie dollar broke through the 0.6800 level during last week’s trading on the back of a weaker US Dollar. The US Dollar (via the DXY) suffered its worst month since September 2010, losing 5.1% on dovish remarks from Fed Chair Jerome Powell that alluded to a slower pace of tightening. After hitting a 13-week high last Thursday, at 0.6845, the AUD/USD pair struggles to keep above the 0.6800 figure as markets remain cautious ahead of the RBA’s final cash rate meeting of the year.
Last Friday’s US nonfarm payroll data revealed a 263,000 increase in November, significantly higher than market expectations of 200,000. The unemployment rate remains steady at 3.7%, while participation slightly eased. Also rising more than expected was annual wage inflation. Wage pressure continues to undermine the Fed’s policy as Average Hourly Earnings (YoY) increased to 5.1% from 4.9% in the prior month, rising twice as much as forecast.
Markets expect the RBA to deliver another 25-basis point rate hike on Tuesday, taking the Official Cash Rate (OCR) from 2.85% to 3.1%. On the US front, economic data releases will feature ISM Non-Manufacturing PMI, due in the early hours of tomorrow, and Friday’s November PPI data.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6791 | 0.01 | |
| AUD/JPY | 91.2280 | -0.03 | |
| AUD/CNH | 4.7540 | -0.76 | |
| DXY | 104.5450 | -0.17 | |
| Rates | Yield (%) | Change | |
| US 10 Yr | 3.49 | -0.33 | |
| Aus 10 Yr | 3.32 | -1.65 | |
| Equities | Level | Change (%) | |
| S&P 500 | 4,071.70 | -0.12 | |
| NASDAQ | 11,461.50 | -0.18 | |
| ASX 200 | 7,301.50 | -0.72 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 106.50 | 1.43 | |
| Gold | 1,809.60 | -0.31 | |
| Brent Crude Oil | 85.57 | -1.51 | |