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CAFX Market Update 04/08/2022

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

United Kingdom     – BoE Interest Rate Decision
Construction PMI (Jul)
United States         – Initial Jobless Claims
Trade Balance (Jun)

Macro Report

Risk assets had a rather positive session overnight, with both European and US sharemarkets both lifting.  The NASDAQ closing at its highest level since 4 May (+2.6%) and the S&P 500 +1.6%.

US treasuries were firmer on Wednesday (yields lower). San Francisco Federal Reserve President Mary Daly said it would be ‘reasonable’ for the Fed to lift rates 50 basis points in September rather than 75bp. US 10-year yields fell 4 points to near 2.70%.

In FX, currencies were mixed.  The AUD did gain from its Asian session lows.

In US economic data, the ISM services index rose from 55.3 to 56.7 in July (survey: 53.5). The S&P Global services index fell from 52.7 to 47.3 in July (survey: 47). Factory orders rose by 2% in June (survey: 1.1%). Mortgage applications rose 1.2% in the past week after falling 1.8% in the prior week.

Coming up this evening, the Band of England policy decision is slated for release.  Analysts are mixed on the expected rise, mostly skewed towards 50bps ahead of a possible 25bps.

Outside of that we will also see German factory orders and weekly US jobless claims.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6957 0.20
AUD/JPY 93.08 0.13
AUD/CNH 4.704 0.19
DXY 106.39 0.10
Rates Yield (%) Change
US 10 Year 2.715 0.009
Aus 10 year 3.156 0.032
Equities Level Change (%)
S&P 500 4155 1.56
NASDAQ 12668 2.59
ASX 200 6983 0.11
Commodities Level Change (%)
Iron Ore 109.5 -4.5
Gold 1765.39 0.3