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CAFX Market Update 07/11/2022

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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

China                         – Trade Balance (USD) (Oct)
United Kingdom     – Halifax House Price Index (YoY)

Macro Report

Big moves are afoot in the markets again, following on from a strong Friday in Asian hours, US payrolls in the evening, then comments from China over the weekend on the countries COVID policy.

The AUD, which saw outsized gains when compared to the USD/CNY, saw upward movements of 3% and touching 0.6483.  Some gains were given back on Monday morning on market open as comments on China’s commitment to zero-covid will remain in place, falling some 0.80%.

US payrolls, which acted as somewhat of a tailwind for an already bullish session, showed the unemployment rate ticking upwards to 3.7% from September’s 3.5%.

Coupled with a shifting narrative from Fed speakers, hinting at support of a slowdown in policy, has seen markets gravitate towards a 50bps rise as opposed to 75bps at the next FOMC.

A quiet start to the week will see Chinese trade figures released during Asian hours.  Key data this week will be a US double header of CPI and results of Mid-term elections.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6417 -0.76
AUD/JPY 94.27 0.31
AUD/CNH 4.6065 0.14
DXY 111.013 0.21
Rates Yield (%) Change
US 10 Year 4.163 0.014
Aus 10 year 3.900 0.027
Equities Level Change (%)
S&P 500 3771 1.36
NASDAQ 10475 1.28
ASX 200 6893 0.50
Commodities Level Change (%)
Iron Ore 85.16 2.15
Gold 1685.7 3.59
Brent Crude oil 98.64 4.19