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CAFX Market Update 22/07/2022

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                        – National Core CPI (YoY) (Jun)
Services PMI
Eurozone                   – Manufacturing PMI (Jul)
Services PMI (Jul)
United States            – Manufacturing PMI (Jul)
S&P Global Composite PMI (Jul)

Macro Report

European Central Bank (ECB) has raised interest rates for the first time since 2011 in an attempt to control surging inflation that has increased to 8.6% in the eurozone. Following a 50 basis-point increase on its three key interest rates late last night, the euro area’s primary policy interest rate (deposit facility) has now increased to 0%, with further hikes expected this year.

The Philly Fed Manufacturing Index (July), which depicts the relative level of general business conditions in Philadelphia, pointed to the first signs of a possible US economy slowdown. Data showed a print of -12.3 vs a forecast of -2.5 and a previous print of -3.3.

This weaker-than-expected data saw US Treasuries gain and 10-year yields retrace back below the 3% level to 2.87%. A set back to the US dollar (via the DXY index) sees the AUD/USD currency pair continue to strengthen, with the Aussie dollar firming above the 69-cent level.

US Stocks also rose amid investor optimism due to stronger-than-expected quarter corporate earnings. S&P 500 gained 39.05 points to 3,998.95, and Nasdaq Composite added 161.96 points to 12,059.61.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6930 -0.06
AUD/JPY 95.2930  0.05
AUD/CNH 4.6889 -0.02
DXY 106.9100 -0.16
Rates Yield (%) Change
US 10 Year 2.87 -0.15
Aus 10 year 3.44  0.028
Equities Level Change (%)
S&P 500 3998.95 0.99
NASDAQ 12059.61 1.36
ASX 200 6794.28 0.52
Commodities Level Change (%)
Iron Ore 105.27  0.73
Gold 1734.00  0.16
Brent Crude oil 103.86 -2.86