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CAFX Market Update 30/09/2022

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

Japan                     – Jobs/applications ratio (Aug)
Industrial Production (MoM) (Aug)
Retail Sales (YoY) (Aug)
Australia                – Private Sector Credit (MoM) (Aug)
China                     – Chinese Composite PMI (Sep)
Manufacturing PMI (Sep)
Non-Manufacturing PMI (Sep)
Caixin Manufacturing PMI (Sep)
United Kingdom     – Business Investment (QoQ) (Q2)
Current Account (Q2)
GDP (QoQ) (Q2)
Eurozone                – CPI (YoY) (Aug)
Unemployment Rate (Aug)
United States          – Core PCE Price Index (MoM) (Aug)
PCE Price index (YoY) (Aug)
Personal Spending (MoM) (Aug)
Chicago PMI (Sep)

Macro Report

The AUD/USD has corrected itself since plummeting to a 29-month low of 0.6363 during trading on Wednesday. However, the pair closed yesterday at 0.6476 after shedding some of its gains due to US dollar dominance resurging.

Wednesday’s retail sales report indicated signs of strength for the Australian economy as it evidenced strong consumer spending growth in August. Retail sales increased by 0.6% (MoM), above the market consensus of 0.4%,  marking the 8th consecutive rise in the sector.

However, domestic data does not hold the same impact as global developments for the risk-sensitive Aussie dollar. The combination of a hawkish Fed and diverging global interest rates mean the US dollar strength and risk aversion act as key hurdles for the Aussie.

Today, Australia will release its Private Sector Credit, although China’s PMI data will primarily set the tone for the Aussie dollar. China will publish its Manufacturing PMI and the non-manufacturing index, while Caixin will release the Manufacturing PMI for September. Worse-than-expected figures will likely heighten risk-off sentiment and weigh on the Aussie dollar.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6509  0.14
AUD/JPY 93.9160  0.05
AUD/CNH 4.6126  0.09
DXY 111.7860 -0.42
Rates Yield (%) Change
US 10 Year 3.76 0.051
Aus 10 Year 3.94 0.008
Equities Level Change (%)
S&P 500 3,640.47 -2.11
NASDAQ 10,737.51 -2.84
ASX 200 6,555.00  1.44
Commodities Level Change (%)
Iron Ore 98.52  0.00
Gold 1,671.30  0.16
Brent Crude oil 88.49 -0.93