Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.
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Key Data Being Released Today
| Japan | – | Capital Spending (YoY) (Q3) | ||
| Australia | – | Private New Capital Expenditure (QoQ) (Q3) | ||
| China | – | Caixin Manufacturing PMI (Nov) | ||
| United Kingdom | – | Nationwide HPI (YoY) (Nov) | ||
| Eurozone | – | Manufacturing PMI (Nov) | ||
| Unemployment Rate (Oct) | ||||
Macro Report
The AUD/USD gained overnight, hitting a high of 0.6801 following less-hawkish remarks by Federal Reserve Chair Powell. Fed’s Powell confirmed that the US central bank could scale back the pace of interest rate increases “as soon as December”.
China’s Yuan has extended its gains as risk-asset appetite increases with optimism on the country’s reported looser quarantine measures and reopening. China’s reopening themes has kept the US dollar under pressure while aiding sentiment in favour of the Aussie.
Over in the US, we saw the release of nonfarm payrolls in the early hours, which slowed a considerable decline in job growth from adding 239K in October to 127K this month, increasing far less than expected. However, demand still runs strong, with the total number of open and available positions in the US falling to 10.334 million from a previous 10.687 million figure. Resilience can also be seen in the stronger-than-expected GDP (Q3), which revised up to 2.9% versus an expected 2.7% and prior 2.6%.
The US will publish PCE Price Index data and ISM Manufacturing PMI overnight. Data will be critical ahead of the eighth and final Fed meeting of the year, scheduled for December 14, during which a downshift is expected to result in a modest 50 basis points increase in interest rates.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6789 | 0.01 | |
| AUD/JPY | 93.7520 | 0.04 | |
| AUD/CNH | 4.7750 | 0.03 | |
| DXY | 105.9870 | -0.78 | |
| Rates | Yield (%) | Change | |
| US 10 Yr | 3.61 | -3.66 | |
| Aus 10 Yr | 3.46 | -1.86 | |
| Equities | Level | Change (%) | |
| S&P 500 | 4,080.11 | 3.09 | |
| NASDAQ | 11,468.00 | 4.41 | |
| ASX 200 | 7,284.20 | 0.43 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 103.00 | 2.49 | |
| Gold | 1,759.90 | -0.22 | |
| Brent Crude oil | 85.43 | 2.89 | |
