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CAFX Market Update 07/2/2023

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


Aussie continues to fall against the US dollar since last week’s US employment report, which filled the market with speculations that the US Fed may hike rates above market expectations.

On the Aussie front we have the monetary policy by the Reserve Bank of Australia (RBA) being release later today, which supported AUD to regain some lost ground against the USD trading at 0.6883 at the time of this writing. The market players are expecting a 25 bsp hike from the RBA to 3.35% for the cash rate.

Equity markets continue to lose ground as investors showing a risk off mood fuelled by recent events, with the US employment data massively exceeding expectations coming in at 517K jobs and unemployment rate of 3.4%. This set of data also helped price the Federal Funds Rate (FFR) to be lifted to 5.25%-5.50%, per World Interest Rate Probabilities (WIRP).

Looking ahead this week, the US will have Fed Chairman Jerome Powell and Fed Governor Michael Bar speaking, the US Consumer Sentiment will also be featured this week.