Edit Content

CAFX Market Update 8/12/2022

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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
GDP (QoQ) (Q3)
Australia Trade Balance (Oct)
Trade Balance (USD) (Nov)
Eurozone GDP (QoQ) (Q3)
United States Initial Jobless Claims


Macro Report

Despite soft Aussie GDP and China’s trade data, the AUD/USD pair extended its gains to above the 0.6700 level during New York trading amid US dollar volatility.

The Australian economy, as measured by GDP, indicates clear signs of slowing down. In the three months to September, the economy expanded by 0.6% versus the previous quarter’s print of 0.9% and market consensus of 0.7%. Annualised GDP grew 5.9% in the September quarter, significantly improving from 3.2% in the second quarter but beneath 6.2% projections.

Over in China, the headlines were mixed. The November Trade Balance came in at $69.84 billion, falling from the prior month’s print of $85.15 billion. Exports declined 8.7%, and imports dropped 10.6%. While the nation’s macroeconomic data revived worries of an economic downturn, markets welcomed the news of China’s move away from the zero-covid policy. This sparked risk-on sentiment, weakening the US dollar and boosting the Aussie from yesterday’s low of 0.6668.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6725  0.00
AUD/JPY 91.7510 -0.13
AUD/CNH 4.6802  0.33
DXY 105.2060 -0.35
Rates Yield (%) Change
US 10 Yr 3.42 -2.68
Aus 10 Yr 3.35 -1.76
Equities Level Change (%)
S&P 500 3,933.92 -0.19
NASDAQ 10,958.55 -0.51
ASX 200 7,229.40 -0.85
Commodities Level Change (%)
Iron Ore 108.49 0.75
Gold 1,798.60 0.91
Brent Crude oil 77.55 2.27