Market Update 13/01/2025

January 13, 2025

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

• Wall Street experienced a sell-off on Friday following a strong U.S. jobs report, with the S&P 500 closing down 1.5%, Nasdaq down 1.6%, and the Dow Jones down 1.6%. The U.S. monthly employment report was released with stronger-than-expected data. New job additions were 256,000, against expectations of 165,000; the unemployment rate was 4.1%, versus the expected 4.2%. AUD/USD was near 0.6190 before the announcement and fell to a low of 0.6139 after, its lowest level since 2020.

• The USD was well supported, with the 10-year yield rising to a high of 4.78%, before giving back some of the post-FOMC gains, settling at 4.73%. Notably, the market is now pricing the next full Fed rate cut in October, rather than the previously expected June.

• Brent crude oil rose 2.4% to $78.50/bbl following Trump’s comments that “all hell will break loose in the Middle East if Hamas doesn’t release hostages.” Later, a report suggesting U.S. sanctions would affect Russian oil flows pushed Brent crude above $80/barrel for the first time since October, up 4.7% on the day.

• Asian equities ended Friday lower, with Shenzhen down 1.3%, Nikkei down 1.1%, and Hang Seng down 0.9%. The Australian stock market performed relatively better, down only 0.4%, with a 0.9% rise in materials offsetting a 1.2% decline in financials.

• European stock markets opened mostly flat but closed lower, with the DAX down 0.5%, Euro Stoxx 50 down 0.8%, and FTSE 100 down 0.8%.

Mid-market rates.

Currency Pair	Mid-market Rate
AUD/USD	0.6160
AUD/NZD	1.1064
AUD/JPY	96.97
AUD/CNY	4.5284
AUD/EUR	0.6014
AUD/GBP	0.5051
AUD/HKD	4.7956

Chart of the day

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Market Update 13/01/2025

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