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CAFX Market Update 29/11/2022

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                        – Retail Sales (YoY) (Oct)
United States         – CB Consumer Confidence (Nov)
  S&P/CS HPI Composite – 20 n.s.a. (YoY) (Sep)

Macro Report

The rocky start to the week continued overnight, the US dollar edging higher on the DXY Index, as markets continued to grapple with the Chinese protests and COVID lockdowns.

Fear remining for what the later could mean for global growth going forward, US shares with Chinese exposure were impacted along with risk assets sensitive to Chinese growth.  The Aussie dollar slipped from highs near US67.23 cents to lows near US66.42 cents and before settling near US66.50 cents.

Central Bankers also played a part overnight.  Both James Bullard and John Williams, from the US Fed, were both heard with hawkish comments mentioning that their job in curtailing inflation was most likely not complete and for markets to not underestimate changes of higher rates.

In Europe, ECB president Lagarde made mention that inflation in the Eurozone has probably not peaked yet, raising expectations of a super-sized interest rate hike.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6649 -1.48
AUD/JPY 92.35 -1.23
AUD/CNH 4.8197 -0.36
DXY 106.73 0.73
Rates Yield (%) Change
US 10 Year 3.687 0.004
Aus 10 year 3.565 -0.027
Equities Level Change (%)
S&P 500 3965 -1.52
NASDAQ 11049 -1.58
ASX 200 7229 -0.42
Commodities Level Change (%)
Iron Ore 92.74 0.87
Gold 1739.1 -0.81
Brent Crude oil 83.63 -2.08