Edit Content

CAFX Market Update 03/08/2022

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

Japan                        – Services PMI (Jul)
Australia                   – Retail Sales (MoM)
China                         – Caixin Services PMI (Jul)
Eurozone                – Services PMI (Jul)
Retail Sales (MoM) (Jun)
United States         – S&P Global Composite PMI (Jul)
Services PMI (Jul)

Macro Report

A sudden turnaround in risk sentiment has boosted the US dollar against its peers. The US dollar momentum is given by Treasuries rebound, with the 10-year yield currently at 2.75% from the previous month’s low of 2.54%.

Equities are down in the US, with the S&P 500 dropping by 0.67% to 4091.19 and the Nasdaq Composite Index falling 16% to 12348.76.

For the Australian dollar, it took a tumble following the RBA’s 50 basis point rate hike as it lifts its cash rate target to 1.85%. This perceived step back from aggressive tightening has markets believing that the RBA may not be as hawkish as previously believed. RBA governor Philip Lowe’s statement also suggested there could be a potential pause in consecutive rate rises as the RBA closely monitors the release of economic data.

Scheduled for release today is Australia’s real Q2 retail sales, which could provide some momentum to the AUD/USD currency pair. A month-over-month print of 0.5% is predicted versus a previous reading of 0.9%. If the release of retail sales data is better than expected and indicates strength in consumer spending, it could give the RBA room to continue its aggressive rate hikes.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6912 -0.12
AUD/JPY 92.0220 -0.14
AUD/CNH 4.6825 -1.67
DXY 106.2410  0.75
Rates Yield (%) Change
US 10 Year 2.75  0.181
Aus 10 year 3.11  0.133
Equities Level Change (%)
S&P 500 4091.19 -0.67
NASDAQ 12349.76 -0.16
ASX 200 6998.05  0.07
Commodities Level Change (%)
Iron Ore 113.36 -0.87
Gold 1776.3 -0.75
Brent Crude oil 100.54  0.51