Edit Content

Market Update 4/07/2024

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

AUD/USD rallied on Wednesday trading at 0.6700 after the weaker US economic data. 

Equities were stronger. The S&P 500 reached a new all-time high, surpassing 5,535 marking its 33rd record in 2024. The weak US ADP labour market report, along with a sluggish services sector, led US markets to increase the likelihood of a Fed rate cut by about 10% for September. This data pushed the USD DXY and US bond yields lower, with the 10-year yield dropping 7bps to 4.36%.
 
The USD stayed low after the latest Fed meeting minutes revealed that officials are waiting for clearer signs of cooling inflation and are split on how long to maintain high rates. Headlines indicate that the committee is nearing a decision to ease, but hasn’t made a final move yet. Other US data showed the services sector contracted at the fastest rate in four years, private payrolls grew more slowly, and continuing jobless claims increased for the ninth consecutive week.


Economic data to watch out for.

• AU – May. Trade Balance
• UK – Jun. New Car Registrations y/y
• UK – Bank of England Bank Liabilities/Credit Conditions
• UK – Jun. DMP 1 Year CPI Expectations
• UK – Jun. S&P Global UK Construction PMI 
• EU – ECB Publishes Account of June Policy Meeting
• CA – Jun. S&P Global Canada Composite PMI



Mid market rates.

Currency PairMid-market rate
AUD/USD0.6710
AUD/NZD1.0991
AUD/JPY108.43
AUD/CNY4.8985
AUD/EUR0.6218
AUD/GBP0.5264
  

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. 
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.

Facebook
Twitter
LinkedIn