CAFX Market Update 7/12/2022

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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

Australia GDP (QoQ) (Q3)
China Exports (YoY) (Nov)
Imports (YoY) (Nov)
Trade Balance (USD) (Nov)
Eurozone GDP (QoQ) (Q3)

Macro Report

The AUD/USD pair initially appreciated following the Reserve Bank of Australia’s announced rate hike. Still, gains were reversed and the pair finished around the 0.66900 level. The RBA increased its official cash rate (OCR) by 25 basis points to 3.1% as expected yesterday, an anticipated event that seemingly created modest impact in terms of influencing the exchange rate. Governor Lowe’s accompanying statement was perceived as more hawkish than expected, suggesting there is still a more tightening ahead of us.

The US dollar holds firm above the 105.00 level, following yesterday’s 1.2% advance amidst a sell-off in risk-sensitive assets. A broad-based sell-off was also seen on Wall Street while recession fears resumed as hopes for a sooner Fed pivot away from aggressive rate hikes faded.

On the economic docket today; Aussie and Eurozone GDP, and China’s trade balance data.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6686  0.01
AUD/JPY 91.6380 -0.02
AUD/CNH 4.6649 -0.06
DXY 105.5830  0.28
Rates Yield (%) Change
US 10 Yr 3.52 -1.83
Aus 10 Yr 3.35 -1.55
Equities Level Change (%)
S&P 500 3,941.26 -1.44
NASDAQ 11,014.89 -2.00
ASX 200 7,291.30 -0.47
Commodities Level Change (%)
Iron Ore 107.68  0.22
Gold 1,784.00  0.15
Brent Crude oil 79.54 -3.80

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