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CAFX Market Update 29/12/2021

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 Wednesday the 29th of December 2021

  • Today
    • The macro calendar remains light in the Asia time zone.
  • Overnight
    • USD Pending Home Sales (Forecast 0.5%, Previous 7.5%)
    • USD Goods Trade Balances (Forecast 89.00Bm Previous -83.20B)

The Aussie Dollar – Fundamentals

Major currencies were mostly lower against the US dollar in European and US trade. The Euro fell from highs near US$1.1332 to lows near US$1.1288 and was near US$1.1310 at the US close. The Aussie dollar fell from highs near US72.63 cents to lows near US72.20 cents and was near US72.30 cents at the US close. And the Japanese yen held between 114.70 yen per US dollar and JPY114.90 and was near JPY114.80 at the US close.

US treasuries were little changed on Tuesday.

In US economic data, the S&P/Case-Shiller home price index rose 18.4% in the year to October (survey: 18.5%). The FHFA house index was up 17.4% on a year ago. The Richmond Federal Reserve manufacturing index rose from +12 to +16 in December (survey: +8.6). Chain store sales in the past week were up 21.4% on a year ago compared with a 16.4% annual gain in the prior week.

US share markets were mixed on Tuesday. Investors weighed up Omicron news with flights forced to closed while Apple shut its New York stores.  European share markets ended higher on Tuesday despite rising numbers of Omicron cases in Spain and Britain. France tightened measures in response to rising cases numbers but there will be no curfew on New Year’s Eve.

AUD/USD Daily Chart


Major Global Markets

  • Stocks
    • S&P 500 closed at 4786
    • NASDAQ closed at 15781
    • ASX 200 closed at 7420


  • Currencies
    • AUD/USD – At the time of writing this report trades at 0.7233
    • AUD/JPY – At the time of writing this report trades at 83.01
    • AUD/CNH – At the time of writing this report trades at 4.6090
    • DXY (US Dollar Index) – At the time of writing this report trades 96.150
    • AUD/EUR – At the time of writing this report trades 0.6391


  • Bonds
    • US 10-year Bonds are currently at 1.4842
    • Aussie 10-year Bonds are currently at 1.587


  • Commodities
    • Iron Ore 62% – Trading at USD/T 112.71
    • Gold – trading at USD/OZ 1810
    • Brent Crude Oil – Trading at USD/Bbl 78.94