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Market Update 14/10/2024

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

Equity markets finished the week on a positive note as Wall Street kicked off earning season and also supported by optimism around the US economy avoiding a downturn. The S&P 500 gained 0.6%, the Euro Stoxx 50 increased by 0.7%, and the FTSE edged up 0.2%. Meanwhile, the yield on the US 10-year Treasury rose by 4 bps to 4.10%. 
 
US PPI was unchanged in September after a 0.2% rise the previous month, easing due to lower gasoline costs, which suggests further progress toward controlling inflation. Fed officials will consider both this report and Friday’s CPI data, which showed a slightly higher-than-expected rise in inflation driven by increased costs for housing, food, and clothing. Economists analyse the PPI data for categories relevant to the Fed’s preferred inflation measure, the PCE price index and the results were mixed.
 
US consumer sentiment according to the University of Michigan’s index unexpectedly fell for the first time in three months. Ongoing frustration with high living costs outweighed more positive views of the job market. The October sentiment index dropped to 68.9 from 70.1 in September, below the expected 70.9. The report also revealed that consumers expect prices to rise 2.9% over the next year, up from 2.7% in September, marking the first increase in five months.
 
Fed’s Goolsbee stated that he doesn’t see clear signs that the economy is overheating, even after the strong September jobs report. He emphasized that inflation has slowed considerably while the labor market remains robust. When asked about his main concern, the Chicago Fed chief mentioned that officials must stay vigilant about the possibility that strong demand could reignite inflation.
 
Overall USD remained steady against major currencies.

The NZ services sector PMI for September is set to be released today, along with the electronic card transactions data for the same month. Governor Orr is also scheduled to speak, though his remarks aren’t expected to impact the market. There’s no major international data to highlight today.



Mid-market rates.

Currency Pair Mid-market rate
AUD/USD 0.6727
AUD/NZD 1.1048
AUD/JPY 100.43
AUD/CNH 4.7672
AUD/EUR 0.6158
AUD/GBP 0.5155
AUD/HKD 5.2276

Chart of the day

Disclaimer:

The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved. 
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