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CAFX Market Update 20/07/2022

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

Eurozone                   – German PPI (MoM) (Jun)
Canada                      – Core CPI (MoM) (Jun)
China                         – New Loans

Macro Report

US equities surged in a board-based rally; at the time of writing, the Nasdaq Composite lifted by 3.1% and the S&P 500 by 2.7%.

Oil prices also rebounded, with Brent pushing above the $107USD per barrel level.

The US dollar index (DXY) remains in retreat mode. The Aussie dollar rises for a third day, firming up following the Reserve Bank of Australia’s (RBA) hawkish monetary policy meeting minutes. Board members noted the resilience of the Australian economy, apparent through the strength of the labour market. With the unemployment rate, revealed last Thursday by the ABS, at 3.5%, against a forecasted print of 3.8% and a previous 3.9%, currently the lowest level in 48 years.

Looking ahead, the focus is on Australia’s CPI data due next Wednesday. In the March quarter, consumer prices rose by 5.1%, and the June quarter inflation figures are forecasted to show another sharp rise of 4.6%. Consumer prices will bring further clarity and act as the driving force to RBA’s August rate hike decision.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart


Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6900  0.04
AUD/JPY 95.3330  0.01
AUD/CNH 4.6496  1.07
DXY 106.6820 -0.64
Rates Yield (%) Change
US 10 Year 3.02 0.039
Aus 10 year 3.50 0.079
Equities Level Change (%)
S&P 500 3,936.69  2.76
NASDAQ 11,713.15  3.11
ASX 200 6,649.60 -0.56
Commodities Level Change (%)
Iron Ore 101.00  0.50
Gold 1,711.42 -0.01
Brent Crude oil 107.35  1.02