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CAFX Market Update 14/10/2022

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 CPI (YoY) (Sep)
PPI (YoY) (Sep)
Exports (YoY) (Sep)
Imports (YoY) (Sep)
Trade Balance (USD) (Sep)
Eurozone Trade Balance (Aug)
United States Core Retail Sales (MoM) (Sep)
Export Price Index (MoM) (Sep)
Import Price Index (MoM) (Sep)
Retail Sales (MoM) (Sep)

Macro Report

CPI report released overnight indicated that the US inflation rate has hit 8.2% year over year, compared to a prior reading of 8.3%. Despite the Fed’s efforts to bring down inflation with its sharp hikes, the pace of price increases is still at multidecade highs. The Consumer Price Index rose by 0.4% in September compared to a predicted 0.2%, after gaining 0.1% the prior month. Following hotter-than-expected data, market expectations for another jumbo 75-basis point hike solidified.

Disappointing data caused US equities to seesaw on expectations for continued interest rate hikes from the Fed. With these expectations come worries regarding a global recession. The S&P 500 declined by more than 2% before ending the session with a 2.60% gain.

The Aussie dollar initially plummeted by 1.5% following the data and hit a low of 0.6170. A reversal was later seen for the AUD/USD pair, as it returned to the 0.6300 level but has slightly pulled down to 0.6297 at the moment of writing. As for the US dollar, the DXY index appreciated to 113.737 before retracing to the 112.00 level.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6297 -0.02
AUD/JPY 92.7190  0.01
AUD/CNH 4.5168  0.38
DXY 112.3630 -0.84
Rates Yield (%) Change
US 10 Year 3.94  1.22
Aus 10 Year 4.04  1.35
Equities Level Change (%)
S&P 500 3,669.91  2.60
NASDAQ 10,649.15  2.23
ASX 200 6,642.60 -0.07
Commodities Level Change (%)
Iron Ore 96.50 -1.03
Gold 1,677.00 -0.03
Brent Crude oil 94.61  2.34