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CAFX Market Update 01/08/2022

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.
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

Macro Report

Risk sentiment continued to lift last week; however, the Australian dollar failed to push through the 70-cent level. The AUD may continue to rise this week, but the currency’s trajectory will depend highly on the Reserve Bank of Australia’s rate decision tomorrow.

Markets are predicting another 50 basis-point rate hike, bringing the cash rate to 1.85%. This was after bets on a super-sized interest rate increase were abandoned following Australia’s annual Consumer Price Index (CPI) print of 6.1%, slightly lower than the estimate of 6.3%.

US Dollar weakened overall as traders moved into Treasuries which saw bond markets tighten, pushing the 10-year treasury yield lower to now a 2.66% level.

Commodities-wise, oil prices fell after initially lifting. Brent crude remains slightly above the $100USD per barrel level. Gold took advantage of the US dollar weakness and finished with a fresh new weekly high, now sitting above the $1760USD per ounce level.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6978 -0.10
AUD/JPY 93.0250 -0.10
AUD/CNH 4.7027 -0.16
DXY 106.0170  0.11
Rates Yield (%) Change
US 10 Year 2.66 -0.024
Aus 10 year 3.05 -0.149
Equities Level Change (%)
S&P 500 4130.29  1.42
NASDAQ 12390.69  1.88
ASX 200 6945.15  0.80
Commodities Level Change (%)
Iron Ore 117.50 -0.50
Gold 1777.90  0.23
Brent Crude oil 103.26 -0.68