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CAFX Market Update 22/02/2024

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

During yesterday’s trading session, the AUD/USD pairing reached towards the 50-Day EMA and 200-Day EMA but once again failed to sustain its upward movement.

The pair eased slightly to around 0.6550 due to declining commodity prices.

Despite yesterday’s Aussie wage growth figures, which showed a 0.9% QoQ wage growth in Q4 2023, which was lower than the previous quarter’s 1.3% surge, it did not alter the outlook for Australian interest rates or the Aussie dollar.

In saying that, the reduced risk of a wage-price spiral, coupled with a weakening labour market and subdued consumer spending, sets the stage for potential rate cuts by the RBA.

The USD reacted little to the FOMC’s minutes from its 30‑31 January policy meeting, where most participants expressed concerns about moving too quickly to ease interest rates. By contrast, only a few participants highlighted the risks of delaying rate cuts.

Overall, the market appears to be stuck in a holding pattern, with traders uncertain about its direction.

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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