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 – ANZ Job Advertisements
China – Trade Balance ($95b YTD expected)
Macro Report
A continuation of the same themes from last week with the USD proxy continuing its charge higher whilst currencies such as EURUSD hit a low not seen since June 2020 near the peak of Covid news. However the commodity currencies remain shielded and continue to surge higher as commodity prices continue to climb.
Despite the shelling of the nuclear powerplant, reports that radiation levels remained steady put the market back at ease but still on high alert for this conflict. Stocks behaved more predictably as the market continues to weigh on the risks with the ongoing conflict between Russia and the Ukraine. The proposed humanitarian corridor and ceasefire has already been broken twice with both sides blaming each other for the violation.
US Treasuries yields continued to fall with the 10 year down 11bp to 1.73%, despite the US economy creating 678k jobs vs 423k expected. It wasn’t all good news though as surprisingly average earnings were lower than expected (0% MoM vs 0.5% expected).
Lastly, as noted earlier, commodities continue their pathway higher with Brent up close to 7% whilst Gold was up 1.6%. The question now being with all these rising prices and inevitably inflation, how much will rate hikes hamper the economy.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7362 | -0.12 |
| AUD/JPY | 84.706 | 0.01 |
| AUD/CNH | 4.6541 | -0.23 |
| DXY | 98.6480 | 0.88 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 1.731 | -0.11 |
| Aus 10 year | 2.115 | -0.04 |
| Equities | Level | Change (%) |
| S&P 500 | 4329 | -0.79 |
| NASDAQ | 13838 | -1.41 |
| ASX 200 | 7111 | -0.57 |
| Commodities | Level | Change (%) |
| Iron Ore | 140.06 | 5.03 |
| Gold | 1970.7 | 1.80 |
| Brent Crude oil | 118.11 | 6.93 |