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CAFX Market Update 24/10/2022

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

Key Data Being Released Today

Japan                                    – Services PMI
Eurozone                              – Manufacturing PMI (Oct)
S&P Global Composite PMI (Oct)
Services PMI (Oct)
United Kingdom                    – Composite PMI
Manufacturing PMI
Services PMI

Macro Report

Aussie PMI for October came in this morning, weaker than expected. Manufacturing PMI dropped to 52.8 versus a prior print of 53.5, while Service PMI published lower at 49.0 compared to the previous 50.5 figure. The AUD/USD currency pair eased on this downbeat data after witnessing strong upward momentum on Saturday.

The pair hit a high of 0.6413 this morning before slipping to 0.6359 at the time of writing. With FOMC’s 2-week period of silence among us, the AUD/USD may be restricted, but economic data released this week will be watched closely.

Aussie CPI data is up for publishing this week on Wednesday. The CPI data will be critical, considering data is only released once per quarter. Inflation printed 6.1% (YoY) previously, lower than the US, Europe and UK, and is expected to increase to 7.0%. Renewed CPI figures could pivot the RBA’s interest rate decision following its surprising 25 basis point rate hike.

Meanwhile, this eventful week ahead also brings third-quarter GDP figures for US and China. BOC, ECB and BOJ will announce interest rate decisions. Additionally, flash PMI data will also be eyed as markets eagerly await indications of changing economic conditions.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6359 -0.31
AUD/JPY 95.1080  0.97
AUD/CNH 4.6222  0.27
DXY 112.1660  0.14
Rates Yield (%) Change
US 10 Year 4.22 -0.16
Aus 10 year 4.18 -0.83
Equities Level Change (%)
S&P 500 3,752.75  2.37
NASDAQ 10,859.72  2.31
ASX 200 6,676.76 -0.80
Commodities Level Change (%)
Iron Ore 94.50  0.53
Gold 1,663.40  0.43
Brent Crude oil 93.62  0.13