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CAFX Market Update 23/09/2022

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                – Manufacturing PMI (Sep)
S&P Global Composite PMI (Sep)
United Kingdom     – Composite PMI
Manufacturing PMI
Services PMI
United States         – Manufacturing PMI (Sep)
S&P Global Composite PMI (Sep)
Services PMI (Sep)

Macro Report

The Aussie dollar plunged to fresh lows in wake of Federal Reserve’s 75-basis point rate decision – a third consecutive rise. The rise took the central bank’s target range for the Federal Funds rate to 3.0 to 3.25.

The AUD/USD currency pair marked a 0.62% drop yesterday, bottoming at the 0.65741 level before closing at 0.66200. The pair has been on an upward trend since opening and is up 0.33% today at 0.6644.

The US Dollar (given by the DXY) surged to two-decade highs of 111.563 before closing at 111.037 following the Fed rate rise and Powell’s speech signalling ongoing aggressive rate hikes in the future.

With the Feds leaving limited room for a Dovish take, US equities took a tumble. The S&P 500 dropped 0.84% to 3,757.99, Dow Jones lost 107.10 points, or 0.35%, to 30,076.68, and The Nasdaq Composite decline by 0.84% or 120.02 points to 11,066.80.

The economic docket for today includes a slew of manufacturing, services and composite PMIs figures for Australia, the Eurozone, the UK and the US.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6644 -0.01
AUD/JPY 94.6060  0.02
AUD/CNH 4.7044 -0.06
DXY 111.3530  0.64
Rates Yield (%) Change
US 10 Year 3.71 0.184
Aus 10 Year 3.83 0.166
Equities Level Change (%)
S&P 500 3,757.99 -0.84
NASDAQ 11,066.81 -1.37
ASX 200 6,700.20 -1.56
Commodities Level Change (%)
Iron Ore 98.00 -1.51
Gold 1,679.60 -0.09
Brent Crude oil 90.46  0.70