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CAFX Market Update 7/07/2022

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

Australia                   – Trade Balance (May)
United States         – ADP Nonfarm Employment Change (Jun)
Initial Jobless Claims
Trade Balance (May)
Canada                    – Trade Balance (May)

Macro Report

The safe-haven boosted US dollar has held onto its gains and kept undollars in defensive mood; while the 10-year US Treasury yields rose, the 2-year/10-year yield curve remains inverted – a key recession indicator. Pressure continues for the Pound Sterling and Euro. The Aussie dollar, hammered post RBA’s 50 basis-points rate decision, remains suppressed at the 68-cent level.

Additionally, with mass testing following new Covid-19 clusters across China, the prospect of increased and fresh restrictions may continue to weigh down the Aussie dollar.

Crude oil prices continued to slide for a second day, along with a broader commodity downturn as recession fears pick up.

Focus is on the Federal Reserve as they revealed in the June 14-15 meeting minutes that policy markers are firm about the need to keep rates rising more aggressively and for longer to curb higher inflation. Doing so despite recession risks and reiterating a favoured 75 basis-point hike in the July meeting.

Today, Trade Balance data for May is anticipated for Australia, the United States and Canada. Australian data is expected to indicate a surplus of 10.725 billion, relative to a previous print of 10.495 billion.

AUD/USD Daily Chart


DXY (USD INDEX) Daily Chart


Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6782  0.04
AUD/JPY 92.1420  0.03
AUD/CNH 4.5492 -0.14
DXY 107.0960  0.53
Rates Yield (%) Change
US 10 Year 2.935  0.13
Aus 10 year 3.409 -0.15
Equities Level Change (%)
S&P 500 3845.08  0.36
NASDAQ 11361.85  0.35
ASX 200 6594.40 -0.52
Commodities Level Change (%)
Iron Ore 114.50  0.88
Gold 1739.71  0.05
Brent Crude oil 109.69 -2.02