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CAFX Market Update 05/08/2022

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                        – Household Spending (YoY) (Jun)
United States         – Average Hourly Earnings (MoM) (Jul)
Non-farm Payrolls (Jul)
Private Non-farm Payrolls (Jul)
Unemployment Rate (Jul)
Canada                    – Employment Change (Jul)
Unemployment Rate (Jul)

Macro Report

Wall Street stocks ended mixed, with the S&P edging slightly lower (-0.08%) to 4,151.94 and Nasdaq gaining 0.41%. The US 10-year yield slides below 2.70% on hawkish comments from Fed officials.

Global oil prices dropped to their lowest levels since before Russia’s invasion of Ukraine. Brent has fallen to $94.12USD per barrel level, its lowest since February.

The Aussie dollar has been on a two-day up trend since Tuesday’s fall. The better-than-expected export data primarily carried the AUD/USD currency pair. Australia’s exports showed a month-over-month print of 5.1%, versus a previous print of 8.9%. The country’s trade balance showed a surplus of 17.670 billion, far beyond the 14 billion market forecast and 15.016 billion prior print.

Meanwhile, mixed US economic data also appears to weigh on the US dollar. The US dollar (given via the DXY index) remains cautious around the 106 level. Initial jobless claims for the US rose to 260 thousand, compared to a prior print of 254 thousand. The US trade deficit was expected to come in at 80.1 billion but shrank by a more than expected level of 6.2% during the month, giving a current trade balance figure of -79.6 billion.

In focus today will be US jobs report, providing further clues about the Fed’s pace of rate hikes. Additionally, the Australian docket consists of the RBA Monetary Statement.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6964 -0.10
AUD/JPY 92.4400 -0.22
AUD/CNH 4.6973 -0.03
DXY 105.6930 -0.76
Rates Yield (%) Change
US 10 Year 2.69 -0.053
Aus 10 year 3.14  0.068
Equities Level Change (%)
S&P 500 4151.94 -0.08
NASDAQ 12720.58  0.41
ASX 200 6974.93 -0.01
Commodities Level Change (%)
Iron Ore 110.00 -2.87
Gold 1806.9 -0.01
Brent Crude oil 94.12 -2.75