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CAFX Market Update 06/10/2022

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

Australia                  – Trade Balance (Aug)
United Kingdom     – Construction PMI (Sep)
Eurozone                – Retail Sales (MoM) (Aug)
ECB Publishes Account of Monetary Policy Meeting
United States         – Initial Jobless Claims

Macro Report

The risk-on sentiment that had reigned over markets the previous day somewhat faded over night.

A hot ISM print, beating expectations, led to a ‘good news is bad news impression and set the tone for weaker markets commencing with US equities.  This represented a shift in the recent narrative of a potential Fed pivot.

OPEC+ also met overnight, deciding to cut oil production by 2 million of barrels per day.  This continued to push oil higher, up by another 1.7% and 7% over the past week.

Major currencies were mixed against the US dollar, the Euro fell further away from near parity.  The Aussie dollar fell from highs near US65.20 cents to lows near US64.15 cents and was near US65.00 cents at the US close.

Coming up today, Australia will get trade balance figures.  Overnight markets will be watching the weekly US jobless claims.  Also of note will be several Fed members who are due to speak, including Evans, Cook. Waller and Mester.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.649 0.06
AUD/JPY 93.81 0.00
AUD/CNH 4.5887 0.11
DXY 111.21 1.04
Rates Yield (%) Change
US 10 Year 3.7590 0.142
Aus 10 year 3.784 -0.006
Equities Level Change (%)
S&P 500 3783 -0.20
NASDAQ 11149 -0.25
ASX 200 6816 1.74
Commodities Level Change (%)
Iron Ore 95.26 0.05
Gold 1720 -0.56
Brent Crude oil 93.7 1.7