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
| Japan – | Adjusted Current Account | ||||
| Current Account n.s.a. (May) | |||||
| United States – | Average Hourly Earnings (Jun) | ||||
| Nonfarm Payrolls (Jun) | |||||
| Participation Rate (Jun) | |||||
| Unemployment Rate (Jun) | |||||
Macro Report
US stocks continue to rise for a fourth-day post FOMC meeting minutes, with the S&P 500 and NASDAQ 100 seeing their most significant jump in two weeks. Stocks are rallying on the optimism that the Federal Reserve will be able to maintain inflation without sending the economy into a recession.
Commodities-wise, we see a rise in oil as the US dollar declined for the first time in five days, while the spread between the 2-year and 10-year Treasury yields remains inverted at just below zero. Additionally, the boost in commodities resulted from China’s consideration to allow local governments to issue 1.5 trillion yuan (USD$220 billion) of debt in an infrastructure program in hopes of boosting the 2022 GDP.
The AUD/USD currency pair has managed to push above the 68-cent level on upbeat data and recovery in risk sentiment, erasing some previous losses after recently plummeting. Australia’s trade balance data revealed a better-than-expected print of 15.965 billion surplus in May.
Looking ahead, the US jobs report is anticipated tonight. Data will give further clues about the condition of the US labour market and also shed some light on the Federal Reserve’s path of rate hikes.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6841 | 0.04 |
| AUD/JPY | 93.0430 | 0.03 |
| AUD/CNH | 4.5733 | 0.53 |
| DXY | 107.1300 | 0.03 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.99 | 0.067 |
| Aus 10 year | 3.50 | 0.029 |
| Equities | Level | Change (%) |
| S&P 500 | 3,902.62 | 1.50 |
| NASDAQ | 11,621.35 | 2.28 |
| ASX 200 | 6,648.00 | 0.18 |
| Commodities | Level | Change (%) |
| Iron Ore | 115.14 | 2.46 |
| Gold | 1740.66 | 0.03 |
| Brent Crude oil | 102.32 | -0.40 |