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CAFX Market Update 09/1/2023

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

The AUD/USD climbed higher following the release of crucial US wage and payroll data, which painted a mixed picture and failed to underpin the US dollar. The US Dollar Index (DXY) plummeted 1.20% during last Saturday’s trading, slipping from a high of 105.379 to close at 103.587.

Although Nonfarm Payrolls came in better than forecasted at 223K, Average Hourly Earnings (AHE) in December rose by 0.3% (MoM), a downward revision from the prior month’s 0.4%. This sign of cooling wage growth eased worries about the Fed’s policy path and increased bets for a slower pace of rate hikes ahead. The Aussie dollar edged higher on the release, climbing toward the 0.6800 level.

However, after the release of ISM non-manufacturing PMI data, which showed a drop to contractionary territory, printing its lowest reading since May 2020 at 49.6, the AUD/USD managed to extend its upside journey towards a high of 0.68869. The Aussie is trading at 0.6877 at the latest, just shy of the 0.69 handle.

Looking ahead this week, Australia will release its Monthly Consumer Price Index (CPI) and Retail Sales on Wednesday and Trade Balance data the following day. On the US front, its economic docket will bring us the Consumer Price Index (CPI), Unemployment Claims and UoM Consumer Sentiment. Moreover, markets will be eyeing Tokyo’s inflation numbers, set to be released tomorrow.

Australia Building Approvals (MoM) (Nov)
Eurozone Unemployment Rate (Nov)


Currencies Level Change (%)
AUD/USD 0.6876 -0.01
AUD/JPY 90.8150  0.00
AUD/CNH 4.6910  0.93
DXY 103.8790 -1.11
Rates Yield (%) Change
US 10 Yr 3.75%  1.30
Aus 10 Yr 3.70 -3.29
Equities Level Change (%)
S&P 500 3,895.08  2.28
NASDAQ 10,569.29  2.56
ASX 200 7,109.60  0.65
Commodities Level Change (%)
Iron Ore 118.50  2.16
Gold 1,869.70  1.58
Brent Crude 78.57  0.15