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
USD: Mixed Wall St. Session; AUD Dips on China’s Retaliatory Measures
Wall Street ended mixed overnight as trade tensions resurfaced after China imposed restrictions on five U.S. units of Hanwha Ocean in response to U.S. tariff threats.
The Dow Jones gained +0.9%, S&P 500 +0.3%, while the Nasdaq slipped -0.2%. U.S. 10-year yields eased to 4.02%, and Brent Crude declined 1.2% to $58.70/bbl.
The AUD/USD traded between 0.6440–0.6521, settling near 0.6490 ahead of the Asian open, pressured by renewed USD strength and risk aversion.
- AUD/USD fell to lows of 0.6449 after China’s retaliatory measures, while demand remains around 0.6420 with resistance near 0.6530.
- AUD/NZD traded between 1.1305–1.1418, while NZD/USD held 0.5717–0.5758.
- EUR/USD rose to 1.1615, GBP/USD traded at 1.3249, and USD/CAD hovered near 1.4080.
Equities were mixed globally — Asian markets finished weaker following renewed trade tensions (Hang Seng -1.5%, Nikkei -1%, Shenzhen -0.5%). The ASX 200 fell -0.8%, led by declines in technology (-2%), financials (-1.2%), and healthcare (-1.2%).
European equities opened firmer, with Stoxx +0.7%, CAC +0.7%, DAX +0.5%, and FTSE +0.1%, supported by softer yields and higher crude prices.
Key Economic Data Ahead (Sydney Time)
General Market
Wall Street
- Dow Jones +0.9% to 46,443
- S&P 500 +0.3% to 6,671
- Nasdaq -0.2% to 22,640
- VIX +2.9% to 19.58
Asia-Pacific
- ASX 200 +0.2% to 8,899
- Shanghai Comp -0.6% to 3,865
- Nikkei -2.6% to 46,847
Europe
- FTSE +0.1% to 9,453
- DAX -0.6% to 24,237
- CAC -0.2% to 7,920
Headlines to Watch
- United States:
The Beige Book release is due tonight and will be closely watched as it remains unaffected by the government shutdown. The previous report showed little to no change in economic activity since July. Meanwhile, CPI data and Fed commentary will draw attention amid limited official data availability. - China:
Inflation data is expected today. Analysts anticipate CPI to fall 0.2% YoY in September (vs. -0.4% in August), supported by rising food prices. PPI is forecast to drop 2.3% YoY, reflecting weaker factory-gate prices despite stronger upstream cost pressures. - Australia:
Remarks from RBA’s Hunter and the Westpac Leading Index are expected to provide further insight into the domestic outlook following the central bank’s steady stance in September. - Eurozone & UK:
ECB’s Rehn, and BOE officials Ramsden and Breeden are set to speak, with markets watching for policy guidance amid inflation and growth concerns.
Mid-market rates
| Currency Pair | Mid-market Rate | | AUD/USD | 0.6494 | | AUD/NZD | 1.1364 | | AUD/JPY | 98.54 | | AUD/CNY | 4.6285 | | AUD/EUR | 0.5596 | | AUD/GBP | 0.4874 | | AUD/HKD | 5.0480 |
|
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.3
