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CAFX Market Update 20/02/2024

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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

MACRO REPORT

The AUD/USD pair holds steady near the 0.6540 level after a sharp rally to nearly 0.6550 during Monday’s late European session. However, the pair is expected to remain on edge today, given the release of the Meeting Minutes from the RBA’s first meeting of the year.

Due at 11:30 AEDT, the minutes will likely acknowledge the moderation of price levels. Still, a line or two is expected to highlight the concerning level of inflation despite recent progress.

Although Aussie labour market figures disappointed markets last week, it is likely that several months of soft employment numbers will be required before the RBA considers a trimming rates.

Investors will also focus on the rate decision by the PBoC, announced following the RBA minutes. The reopening of Chinese markets after the Lunar New Year celebrations has boosted the appeal of the Aussie. Chinese equity markets opened up in the green and maintained those gains.

Thursday sees the Fed’s latest Meeting Minutes, which will draw plenty of attention as markets try to determine when the Fed will begin cutting rates.

Disclaimer:

The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved. 
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.

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