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CAFX Market Update 07/09/2022

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                   – GDP (QoQ) (Q2)
China                         – Exports (YoY) (Aug)
Imports (YoY) (Aug)
Trade Balance (USD) (Aug)
Eurozone                – GDP (QoQ) (Q2)
United States         – Exports
Trade Balance (Jul)

Macro Report

The AUD/USD currency pair plummeted to monthly lows following the Reserve Bank of Australia’s announced rate hike. As expected, the RBA increased the official cash rate (OCR) by 50 basis points to 2.35%. Such an anticipated event seemingly created a limited reaction in terms of influencing the exchange rate, as there was no material change to the markets’ outlook for Australia’s monetary policy path.

On the strength of the US dollar, the AUD/USD has made a sharp decline, currently trading at 0.6725 at the time of writing. That being said, Australia’s Gross Domestic Product (GDP) report may encourage the RBA to take a more aggressive stance. The Australian economy is expected to expand by 3.5% in the second quarter of 2022, following a growth of 3.3% per annum in the previous quarter. With the recent downward trend in the Aussie dollar, the currency likely to struggle should the RBA maintain its current approach to combating inflation.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6725 -0.15
AUD/JPY 96.2920  0.11
AUD/CNH 4.6877 -0.04
DXY 110.3040  0.08
Rates Yield (%) Change
US 10 Year 3.33 0.151
Aus 10 Year 3.72 0.069
Equities Level Change (%)
S&P 500 3,908.19 -0.41
NASDAQ 11,544.91 -0.74
ASX 200 6,795.10 -0.46
Commodities Level Change (%)
Iron Ore 99.50 -1.49
Gold 1713.30  0.02
Brent Crude oil 92.73 -0.11