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
Key Data Being Released Today
Australia – RBA Meeting Minutes
China – Industrial Production (3.9% YoY expected)
Eurozone – Industrial Production & ZEW Economic Sentiment
United States – PPI & NY Empire State Manufacturing
Macro Report
Major currencies were mixed against the US dollar in European and US trade. The Aussie dollar fell from highs near US72.59 cents to lows of US71.90 cents and was near US71.95 cents at the US close. The Euro rose from lows near US$1.0908 to highs near US$1.0991 and was near S$1.0945 at the US close.
Benchmark U.S. 10-year yields rose to 2.1419%, the highest since July 2019, ahead of what is expected to be the US Federal Reserve’s first rate hike in three years on Wednesday to try to tame soaring inflation. US 2-year yields lifted by 11 points to near 1.86%, the highest since August
2019.
Stock markets were mixed, with European stock closing higher and US lower. The pan-European STOXX 600 index lifted by 1.2%, buoyed by further talks between Russian and Ukrainian negotiators. The Nasdaq 100 closed in a bear market for the first time since March 2020 as the tech-heavy gauge extended its slide from a record to more than 20% amid higher bond rates and a looming increasing interest rate cycle from the US Fed.
Oil prices briefly tumbled below $100 a barrel after a recent surge as negotiations between Ukraine and Russia appeared to grow more substantive, which could boost global supplies. While a pandemic-linked travel ban in China cast doubt on the demand outlook.
Ahead, in Australia, consumer confidence and property prices data are released. The RBA issues its March 1 Board meeting minutes. Chinese retail sales, production and investment data are due. US producer prices and Empire State manufacturing data are scheduled.
AUD/USD Daily Chart
DXY (USD INDEX) Daily
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.719 | 0.03 |
| AUD/JPY | 84.969 | 0.02 |
| AUD/CNH | 4.5976 | 0.02 |
| DXY | 99.0810 | -0.04 |
| Rates | Yield (%) | Change (%) |
| US 10 Year | 2.133 | 0.14 |
| Aus 10 year | 2.508 | 0.06 |
| Equities | Level | Change (%) |
| S&P 500 | 4173 | -0.74 |
| NASDAQ | 13047 | -1.92 |
| ASX 200 | 7149 | 1.21 |
| Commodities | Level | Change (%) |
| Iron Ore | 140.3 | -0.86 |
| Gold | 1950.99 | 0.01 |
| Brent Crude oil | 106.1 | -5.91 |
