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CAFX Market Update 28/10/2022

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 Tokyo Core CPI (YoY) (Oct)
CPI Tokyo Ex Food and Energy (MoM) (Oct)
BoJ Interest Rate Decision
Australia ANZ Business Confidence (Oct)
PPI (YoY) (Q3)
PPI (QoQ) (Q3)
United States Core PCE Price Index (MoM) (Sep)
PCE Price index (YoY) (Sep)
Canada GDP (MoM) (Aug)

Macro Report

The European Central Bank delivered a second 75- basis points interest rate hike overnight, raising the deposit rate to 1.5% as inflation remains stubbornly high.

In other news, the US GDP report revealed the economy had resumed growth in the third quarter, expanding at an annualized rate of 2.6% compared to the 2.4% previous print. Data is supportive of a relatively strong economy. While on the other hand, the Department of Labor said initial jobless claims increased from 214,000 to 217,000 for the week which ended October 22.

The Aussie dollar has remained firm above the 0.64000 level following Wednesday’s rally on hotter-than-expected headline Aussie CPI. The AUD/USD pair is currently trading at 0.64568.

Looking ahead today, the spotlight is on the Bank of Japan’s interest rate decision which is expected to be kept at the negative 0.100 per cent level. Although Japan’s inflation has not reached the levels seen in Europe and UK, it is nevertheless at an 8-year higher of 3%.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6456  0.06
AUD/JPY 94.3930 -0.01
AUD/CNH 4.6779  0.29
DXY 110.5870  0.81
Rates Yield (%) Change
US 10 Year 3.92 -0.31
Aus 10 Year 3.74 -2.58
Equities Level Change (%)
S&P 500 3,807.30 -0.61
NASDAQ 10,792.68 -1.63
ASX 200 6,845.10  0.50
Commodities Level Change (%)
Iron Ore 93.56 -1.11
Gold 1,665.60 -0.22
Brent Crude oil 96.65  1.00