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CAFX Market Update 6/07/2022

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

United States         – S&P Global Composite PMI (Jun)
Services PMI (Jun)

Macro Report

The Aussie dollar has come under pressure after fears of an economic downturn and crumbling risk sentiment causing commodities to slide and the dollar to jump. Amid the wave of risk aversion, the demand for safe havens boosted Treasuries and pushed the dollar gauge to the highest level in more than two years.

Commodity prices were hammered, with oil losing more than 9%, copper down 5% to almost make a two-year low, while gold fell more than 2%, crushed below the $1800USD per ounce level.

The US dollar rose strongly on the defensive mood against all the undollars, with Euro and Pound Sterling plunging to new lows, while the Aussie dollar returned to below the 68 handle, despite yesterday’s RBA rate hike of 50-basis points. The AUD/USD pair has slightly recovered after yesterday’s tumble of more than 100-pips. Although the cash rate lifted to 1.35% as expected, it wasn’t enough to overcome a dampened sentiment spurred by the stagflation economic outlook causing the AUD/USD pair to plummet.


AUD/USD Daily Chart


DXY (USD INDEX) Daily Chart


Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6793 -0.13
AUD/JPY 92.0580 -0.37
AUD/CNH 4.5524 -0.07
DXY 106.5350  1.33
Rates Yield (%) Change
US 10 Year 2.805 -0.089
Aus 10 year 3.427 -0.128
Equities Level Change (%)
S&P 500 3831.39 0.16
NASDAQ 11322.24 1.75
ASX 200 6629.30 0.25
Commodities Level Change (%)
Iron Ore 113.61 -0.73
Gold 1768.30  0.20
Brent Crude oil 100.94  1.43