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CAFX Market Update 10/10/2022

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

Macro Report

The Aussie dollar is sinking amid tightening global financial conditions and a buoyant US dollar. The AUD/USD currency pair has continued on its downward trend since the RBA raised its Official Cash Rate (OCR) by “just” 25 basis points. With the RBA seen as less hawkish than other central banks, the Aussie dollar is vulnerable and struggling to retrace its decline. After breaking through the September low (0.6363) last week, the AUD/USD pair currently trades at 0.6359 as US dollar momentum continues.

The US Dollar Index (DXY) was boosted and closed last week well above the weekly lows due to the release of US Nonfarm Payroll (NFP) data. The DXY index rallied to 112.715 after closing at 112.570.

Diverging from currencies, gold prices ended higher, but gains were largely reversed nearing the end of the week. Equities fell as the NFP report for September pointed to continued tightness in the US labour market.

Today’s economic docket is lacking on hard data; however, markets await the release of the all-important US inflation data due Thursday which will likely bring volatility to the markets. Key data releases for China will also be highly anticipated by traders this week, including CPI and trade balance. The UK will release employment data. Meanwhile, consumer sentiment data for Australia is expected tomorrow.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6359 -0.11
AUD/JPY 92.4520 -0.12
AUD/CNH 4.5326  0.02
DXY 112.7880  0.01
Rates Yield (%) Change
US 10 Year 3.88 0.06
Aus 10 Year 2.84 0.06
Equities Level Change (%)
S&P 500 3,639.66 -2.80
NASDAQ 10,652.41 -3.80
ASX 200 6,762.80 -0.80
Commodities Level Change (%)
Iron Ore 95.62  0.00
Gold 1,709.30 -0.67
Brent Crude oil 97.92  3.71