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CAFX Market Update 28/01/2022

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

Australia: PPI

New Zealand: Consumer Confidence (-0.6% MoM)

Hong Kong: GDP (1% QoQ expected)

South Korea: Industrial Production (-0.3% MoM expected)



Macro Report

USD strength persisted carried through from Federal Reserve Chairman Powell’s comments yesterday. US rates continued to surge higher whilst the equities markets(NASDAQ down 1.2% and S&P500 down 0.4% ast the time of writing) continued their slide as market is embracing the notion that the Fed may need to hike 50bp in March and the reduction of the Reserve’s balance sheet may be more aggressive than expected. Commodities also took a hit with oil down 0.3% whilst gold dropped 2%.

Despite signs that the Russian and Ukrainian may deescalate in an orderly manner, with Reuters reporting that Russian troops would leave Belarus once the military exercises are finished. This was not enough for a risk rally to return to the market as rhetoric between the US, Russia and NATO continue.



AUD/USD Daily Chart







Major Global Markets

Currencies Level Change (%)
AUD/USD 0.703 -1.21
AUD/JPY 81.088 -0.60
AUD/CNH 4.4769 -0.66
DXY 97.2370 0.78
Rates Yield (%) Change (%)
US 10 Year 1.801 -0.06
Aus 10 year 2 -0.05
Equities Level Change (%)
S&P 500 4333 -0.40
NASDAQ 14003 -1.20
ASX 200 6838 -1.77
Commodities Level Change (%)
Iron Ore 126.64 3.07
Gold 1795.74 -1.34
Brent Crude oil 89.79 -0.31