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CAFX Market Update 16/09/2022

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

New Zealand           – Business NZ PMI (Aug)
China                      – Fixed Asset Investment (YoY) (Aug)
Industrial Production (YoY) (Aug)
Chinese Industrial Production YTD (YoY) (Aug)
Chinese Unemployment Rate
United Kingdom      – Retail Sales (MoM) (Aug)
Eurozone                – CPI (YoY) (Aug)

Macro Report

The Australian dollar recovered some of its losses but lacked material change following the release of the employment report and has since dropped below the 0.6700 level, currently trading at 0.6692 at the time of writing.

Aussie jobs report missed expectations, showing 33.5K jobs added, slightly below the expected 35k overall change for the month, while the unemployment rate inched higher to 3.5% against the forecasted and previous print of 3.4%. However, the participation rate printed 66.6% as expected, up from last month’s 66.4%.

Jobs report increased bets on a 50 basis point rate hike by the RBA in its October meeting. The Aussie dollar and other risk currencies remain subject to volatility following the fallout from US CPI data.

Meanwhile, the US dollar index (DXY) has pulled back but remains dominant as the Fed’s aggressive stance dictates market views. US sales data printing a 0.3% change in the total value of sales at the retail level has reinforced markets’ expectations that the Feds will continue on its aggressive tightening path with its third consecutive 75 basis point hike next Thursday – further supporting the Greenback.

On the agenda today is key economic data for China, including retail sales, industrial production and unemployment. Data could confirm the extent of the country’s economic slowdown.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6692 -0.09
AUD/JPY 95.9430 -0.25
AUD/CNH 4.6886 -0.24
DXY 109.7020  0.04
Rates Yield (%) Change
US 10 Year 3.45 0.047
Aus 10 year 3.68 0.051
Equities Level Change (%)
S&P 500 3,901.35 -1.13
NASDAQ 11,552.36 -1.43
ASX 200 6,842.89  0.21
Commodities Level Change (%)
Iron Ore 103.50 -2.50
Gold 1,677.30 -1.86
Brent Crude oil 90.86 -3.44