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CAFX Market Update 19/08/2022

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

United Kingdom     – Core Retail Sales (YoY) (Jul)
Retail Sales (MoM) (Jul)
Canada                    – Core Retail Sales (MoM) (Jun)

Macro Report

The Dollar Index (DXY) has surged to a one-month high, rising 0.85% overnight despite softer Treasury Yields. Although the release of the Fed’s July Meeting Minutes leaned towards the dovish side, it failed to dent the US dollar as it remained firm against other major currencies.

The strong US Dollar continues to weigh on the Aussie dollar. Additionally, the disappointing jobs report sent the Aussie dollar tumbling and government bond yields lower. An unexpected reduction of 40.9 thousand jobs, well above the predicted 25.0 thousand, heavily pressured the AUD. The heatwave in China, prompting additional factory closures, has further weighed on the already fragile sentiment in the Asia-Pacific region.

The AUD/USD currency pair closed at 0.6914, falling 0.27% but has now retreated to the 0.6901 level at the time of writing.

Commodities-wise, gold prices weakened on the strengthening US dollar and fell 0.21% in a single day, settling at the $1,758.47USD per ounce level.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6901 -0.23
AUD/JPY 94.0680  0.10
AUD/CNH 4.6953 -0.07
DXY 107.6530  0.16
Rates Yield (%) Change
US 10 Year 2.88  0.058
Aus 10 Year 3.31  0.07
Equities Level Change (%)
S&P 500 4,283.74  0.23
NASDAQ 12,965.34  0.21
ASX 200 7,112.78 -0.21
Commodities Level Change (%)
Iron Ore 105.51 -4.18
Gold 1,770.80 -0.02
Brent Crude oil 96.59  3.14