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CAFX Market Update 10/1/2023

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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The Aussie Dollar tested fresh highs after attempting to extend a rally above the critical resistance of 0.6950.The currency’s upward momentum is underpinned by China’s continuous move away from zero-Covid and falling demand for the US Dollar.

The AUD/USD surged on news of Beijing’s decision to ease restrictions on Australian coal imports into the country. Not to mention, China’s continuous reversal of much of its strict Covid policies as it moves towards reopening its borders. Meanwhile, expectations and hopes that the Fed could slow the pace of its rate hikes at its upcoming meeting favour a bearish atmosphere for the US Dollar. The AUD/USD pair has since consolidated around the 0.69 mark, trading 0.6913 at the latest, down -0.12%.

Next of relevance, markets anticipate the speech from Fed Chair Powell, seeking clues about the likely monetary path taken at the Jan. 31 – Feb. 1 policy meeting, along with fresh projections on the terminal rate following the latest data suggesting a drop in wage inflation. On the Aussie front, Monthly Consumer Price Index (CPI) will take the spotlight, forecasted to print higher at 7.0% tomorrow.


Japan Household Spending (Nov)
    Tokyo Core CPI (Dec)
    Tokyo CPI (Dec)
    CPI Tokyo Ex Food and Energy (Dec)
United Kingdom BRC Retail Sales Monitor (Dec)