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CAFX Market Update 15/08/2022

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

Key Data Being Released Today

Japan                        – GDP (QoQ) (Q2)
China                         – Industrial Production (YoY) (Jul)
Chinese Unemployment Rate
Canada                    – Manufacturing Sales (MoM) (Jun)
Wholesale Sales (MoM) (Jun)

Macro Report

The Aussie dollar surged last week following a softer-than-expected US Consumer Price Index (CPI) and a weaker US dollar. Lower than anticipated inflation report data relieved some inflationary and growth concerns while altering market expectations for the Fed’s September rate decision from 75 to 50 basis points.

Headline US CPI sent equities higher and Treasury yields lower. The US 10-year treasury yield dipped 5 basis points to 2.83% end of week as market participants digested the week’s economic data.

The Saturday release of University of Michigan Consumer Sentiment numbers also reflected an upbeat mood, coming in at 55.1 compared to the expectation of 52.5 and the previous release of 51.5.

Looking ahead to this week, we have a plethora of data releases. Due today from China; Industrial production performance and retail sales data.

Later in the week, US retail sales and FOMC meeting minutes are due. The RBA will release its meeting minutes tomorrow, and the Australia Bureau of Statistics (ABS) will report July employment data on Thursday. Additionally, the Reserve Bank of New Zealand is expected to raise its official cash rate (OCR) by 50 basis points on Wednesday.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.7122  0.01
AUD/JPY 95.05 -0.03
AUD/CNH 4.7901  0.09
DXY 105.6770  0.04
Rates Yield (%) Change
US 10 Year 2.83 0.0390
Aus 10 year 3.42 0.1230
Equities Level Change (%)
S&P 500 4280.15  1.73
NASDAQ 13047.19  2.09
ASX 200 7032.51 -0.54
Commodities Level Change (%)
Iron Ore 113.00 -0.44
Gold 1817.10  0.09
Brent Crude oil 97.80 -0.30