Edit Content

CAFX Market Update 21/07/2022

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

Japan                        – Exports (YoY) (Jun)
Imports (YoY) (Jun)
Trade Balance (Jun)
United States         – Initial Jobless Claims
Philadelphia Fed Manufacturing Index (Jul)
Philly Fed Employment (Jul)

Macro Report

As commodity prices stabilise, specifically base metals and energy, the Aussie dollar has managed to make some impressive gains over the past couple of days, although having slightly eased off to below the 69-cent level. While metals are seeing gains, gold continues to struggle, currently subdued around the $1710USD per ounce level, despite a weaker US dollar (via the DXY index).

The improved market outlook prompting the AUD strength also sees the US dollar take a hit and global equities rally. The less sought-after safe haven is perhaps due to speculation that the Fed will proceed with a 75 basis-point rate hike over a 100 basis-point increase at next week’s FOMC meeting. This move away from previous market expectations is depicted by the 10-year Treasury yield pushing back to above the 3% level.

Today’s economic news will feature the Philly Fed Manufacturing Index and Initial Jobless Claims on the US front. Japan will also see June figures for imports, exports and the trade balance. Forecasts show an increase in exports and a slowing of imports from previous months. As well as a trade deficit of 1,509.7 billion yen following the previous month’s 2,385.8 billion yen shortfall.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6889  0.01
AUD/JPY 95.2450  0.01
AUD/CNH 4.6640  0.34
DXY 107.0760  0.37
Rates Yield (%) Change
US 10 Year 3.03 0.017
Aus 10 year 3.54 0.05
Equities Level Change (%)
S&P 500 3959.90 0.59
NASDAQ 11897.65 1.58
ASX 200 6759.20 1.65
Commodities Level Change (%)
Iron Ore 104.51 -0.24
Gold 1711.50 -0.36
Brent Crude oil 106.92 -0.40