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CAFX Market Update 8/07/2022

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

Japan                        – Adjusted Current Account
Current Account n.s.a. (May)
United States             – Average Hourly Earnings (Jun)
Nonfarm Payrolls (Jun)
Participation Rate (Jun)
Unemployment Rate (Jun)

Macro Report

US stocks continue to rise for a fourth-day post FOMC meeting minutes, with the S&P 500 and NASDAQ 100 seeing their most significant jump in two weeks. Stocks are rallying on the optimism that the Federal Reserve will be able to maintain inflation without sending the economy into a recession.

Commodities-wise, we see a rise in oil as the US dollar declined for the first time in five days, while the spread between the 2-year and 10-year Treasury yields remains inverted at just below zero. Additionally, the boost in commodities resulted from China’s consideration to allow local governments to issue 1.5 trillion yuan (USD$220 billion) of debt in an infrastructure program in hopes of boosting the 2022 GDP.

The AUD/USD currency pair has managed to push above the 68-cent level on upbeat data and recovery in risk sentiment, erasing some previous losses after recently plummeting. Australia’s trade balance data revealed a better-than-expected print of 15.965 billion surplus in May.

Looking ahead, the US jobs report is anticipated tonight. Data will give further clues about the condition of the US labour market and also shed some light on the Federal Reserve’s path of rate hikes.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart


Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6841 0.04
AUD/JPY 93.0430 0.03
AUD/CNH 4.5733 0.53
DXY 107.1300 0.03
Rates Yield (%) Change
US 10 Year 2.99 0.067
Aus 10 year 3.50 0.029
Equities Level Change (%)
S&P 500 3,902.62 1.50
NASDAQ 11,621.35 2.28
ASX 200 6,648.00 0.18
Commodities Level Change (%)
Iron Ore 115.14  2.46
Gold 1740.66  0.03
Brent Crude oil 102.32 -0.40