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
| Japan | – | Household Spending (YoY) (Oct) | |||
| United Kingdom | – | BRC Retail Sales Monitor (YoY) (Nov) | |||
| Construction PMI (Nov) | |||||
| Australia | – | Current Account (Q3) | |||
| RBA Interest Rate Decision (Dec) | |||||
| Retail Sales (MoM) (Oct) | |||||
Macro Report
The Aussie dollar has taken a beating against the Greenback, plunging below the 67 cents level on upbeat US Services PMI. Data for November showed surprising strength, soaring to 56.6 from 54.4 in October due to a surge in business activity. This above-expectation acceleration in service demand has pushed US treasury yields higher, lowered stocks and allowed the US dollar to regain strength amidst boosted chances for a more hawkish fed at the upcoming December meeting. At the time of writing, the AUD/USD is trading at 0.67018, down from yesterday’s high of 0.68509, dropping more than 2%.
All eyes are on RBA’s interest rate decision today. Governor Lowe is expected to lift rates by 25 basis points for a third consecutive time, potentially pushing the Official Cash Rate (OCR) from 2.85% to 3.1%. This comes before tomorrow morning’s release of quarterly Aussie GDP data, anticipated to report a 6.3% growth year-on-year.
Nevertheless, domestic data does not appear to hold the same impact on the risk-sensitive Aussie as global developments. The Aussie dollar is now battling a recalibration of Fed expectations and soured market moods which may see the Aussie at the mercy of US dollar bulls.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6702 | 0.06 | |
| AUD/JPY | 91.5860 | -0.03 | |
| AUD/CNH | 4.6690 | -1.98 | |
| DXY | 105.2890 | 0.71 | |
| Rates | Yield (%) | Change | |
| US 10 Yr | 3.57 | 0.45 | |
| Aus 10 Yr | 3.37 | -0.06 | |
| Equities | Level | Change (%) | |
| S&P 500 | 3,998.84 | -1.79 | |
| NASDAQ | 11,239.94 | -1.93 | |
| ASX 200 | 7,325.60 | 0.33 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 107.44 | 1.43 | |
| Gold | 1,780.40 | -0.05 | |
| Brent Crude oil | 82.68 | -3.38 | |