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CAFX Market Update 28/07/2022

The US dollar fell overnight, following the US Federal Reserves monetary policy decision to hike interest rates by 75bps.  The hike, inline with expectations, takes the target range to 2.25-2.5%.

Of note from the event was Jerome Powell’s press conference, where he said that rates had reached neutrality.  Powell said that it’s time to move to a meeting-by-meeting basis, and refrain from specific guidance, leaving space to be reactive to incoming data.

He also went to lengths to hose down fears of a recession when asked questions around such.

US Equities soared post the conference, also aided by the tailwind of earning seasons, and notably figures released by Microsoft and Google.

Ahead this evening, attention will now focus upon the advance read of the second quarter US GDP.  Of note will be any indication of the occurrence of two consecutive quarters of negative growth, the technical definition of a recession.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6985 -0.07
AUD/JPY 94.69 -0.80
AUD/CNH 4.7116 -0.03
DXY 106.325 -0.13
Rates Yield (%) Change
US 10 Year 2.774 -0.004
Aus 10 year 3.20 -0.031
Equities Level Change (%)
S&P 500 4024 2.62
NASDAQ 12032 4.06
ASX 200 6861 0.56
Commodities Level Change (%)
Iron Ore 110.30 3.9
Gold 1717.33 -0.00
Brent Crude oil 120.01 0.24