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CAFX Market Update 31/12/2021

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 Friday the 31st of December 2021

  • Today
    • CNY Chinese Composite PMI
    • CNY Manufacturing PMI
    • CNY Non-Manufacturing PMI
  • Overnight
    • No major economic data is expected overnight.

The Aussie Dollar – Fundamentals

Major currencies were mixed against the US dollar in European and US trade. The Aussie dollar held between US72.43 cents and US72.75 cents and was near US72.50 cents at the US close.  The Euro held between US$1.1297 and US$1.1345 and was near US$1.1325 at the US close.

In US economic data, new claims for unemployment insurance (jobless claims) fell by 8,000 to 198,000 in the past week (survey 208,000). The Chicago purchasing managers index rose from 61.8 to 63.1 in December (survey 62.0).

Global oil prices lifted by up to 0.6% on Thursday. Supporting prices was news that a number of countries reduced the quarantine period for the Omicron variant to protect their economies.

Markets had taken a positive tone on the back of US economic data that suggested that the recent uptick in Omircom Omicron cases had not resulted with a surge in layoffs.

However, markets then trended lower in late trade, including the AUD, highlighting the perceived uncertainty of surging COVID cases.

AUD/USD Daily Chart


Major Global Markets

  • Stocks
    • S&P 500 closed at 4778
    • NASDAQ closed at 15741
    • ASX 200 closed at 7513


  • Currencies
    • AUD/USD – At the time of writing this report trades at 0.7249
    • AUD/JPY – At the time of writing this report trades at 83.42
    • AUD/CNH – At the time of writing this report trades at 4.6231
    • DXY (US Dollar Index) – At the time of writing this report trades 95.97
    • AUD/EUR – At the time of writing this report trades 0.6401


  • Bonds
    • US 10-year Bonds are currently at 1.5083
    • Aussie 10-year Bonds are currently at 1.621


  • Commodities
    • Iron Ore 62% – Trading at USD/T 117.25
    • Gold – trading at USD/OZ 1815
    • Brent Crude Oil – Trading at USD/Bbl 79.32