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CAFX Market Update 07/01/2022

Good Morning,


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 Friday the 7th of January 2022

  • No meaningful data during out time
  • Overnight Tonight
    • USD – Average Hourly Earnings m/m
    • USD – Non-Farm Employment Change
    • USD – Unemployment Rate

The Aussie Dollar – Fundamentals

In the North America session, the AUD/USD slid for the second day of the week, falling 0.84%. This fall is courtesy of a hawkish Federal Reserve alongside a rise in US Treasury yields, with the 10-year benchmark note above 1.70%, the highest since April 2021.

In the meantime, US Initial Jobless Claims for the week ending on January 1, 2022, rose by 207,000 more than the 197,000 estimated by economists. The 10,000 increase of claims in the first week of the year impacted the 4-week average, which topped 204,500, higher than the 199,750 in the prior week. Despite rising, jobless claims hovered near a five-decade low in recent weeks.

But tonight, all eyes will be focused on a crucial US Non-Farm Payroll.

Tonight’s US Non-Farm Payrolls are next to potentially cause another risk event in the currency markets. Anything outside of what is expected could shock the market and cause the currency to move violently. It will be an interesting read as the late-December COVID surge likely came too late to prevent a pickup in US payrolls after the gain in November appeared to be held down by seasonal factors.


The Aussie Dollar – Technical Analysis

The AUD/USD daily chart depicts the pair as bearish biased, as the daily moving averages (50 and 200 DMAs) reside above the spot price, with a downslope of the 50 DMA acting as a dynamic resistance level.


Resistance on the Top Side – We see resistance at 0.7224 (50DMA). If the market rebounds and breaks the 50 DMA we see further resistance at 0.7300, then at 0.7415

Support on the Downside –   With the fall overnight we will be watching the market very closely today to see if the market can consolidate its break of support at 0.7172. If 0.7172 is broken, we see further support at 0.7110 and 0.7000.


AUD/USD Daily Chart


DXY (USD INDEX) Daily Chart


Major Global Markets

  • Stocks
    • S&P 500 closed at 4696
    • NASDAQ closed at 15817
    • ASX 200 closed at 7442.2


  • Currencies
    • AUD/USD – At the time of writing this report trades at 0.7172
    • AUD/JPY – At the time of writing this report trades at 83.03
    • AUD/CNH – At the time of writing this report trades at 4.5969
    • DXY (US Dollar Index) – At the time of writing this report trades 96.241
    • AUD/EUR – At the time of writing this report trades 0.6342


  • Bonds
    • US 10-year Bonds are currently at 1.728
    • Aussie 10-year Bonds are currently at 1.831


  • Commodities
    • Iron Ore 62% – Trading at USD/T 125.94
    • Gold – trading at USD/OZ 1790
    • Brent Crude Oil – Trading at USD/Bbl 81.94