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CAFX Market Update 19/07/2022

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

Australia                    – RBA Meeting Minutes
United States            – Building Permits (Jun)
Housing Starts (MoM) (Jun)

Macro Report

In the absence of any major economic news, Euro lifted above the 1.01 level while the Aussie dollar also managed to cross above the 68-cent level ahead of the anticipated Reserve Bank of Australia (RBA) meeting minutes. The pleasing US retail sales data released last Friday has improved market sentiment, as data indicating strong consumer spending despite higher inflation has boosted the Aussie dollar.

US equities retreated overnight as stock optimism faded. S&P 500 fell 32 points to 3,830, and the Nasdaq Composite dropped 92 points to 11,360.

Commodity prices remain volatile, with Brent recovering slightly, increasing 2%, and now sitting above the $105USD per barrel level. However, we saw gold struggle once again, dropping back to the $1708USD per ounce level.

Today, the release of the RBA minutes will hopefully provide some clues as to how aggressive the RBA plans to be with its rate-tightening cycle, as it attempts to manage surging inflation without suffocating economic activity.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6807 -0.07
AUD/JPY 94.0600 -0.05
AUD/CNH 4.6017 -0.06
DXY 107.3660 -0.64
Rates Yield (%) Change
US 10 Year 2.99  0.068
Aus 10 year 3.49  0.055
Equities Level Change (%)
S&P 500 3830.85 -0.84
NASDAQ 11360.05 -0.81
ASX 200 6687.10  1.23
Commodities Level Change (%)
Iron Ore 100.50 -4.29
Gold 1708.16 -0.06
Brent Crude oil 106.27  5.05