Welcome to our daily market update where we help keep you informed on the latest happenings in the world of FX and show you what this means for the Mighty Aussie Dollar.
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Key Data Being Released Today
| Australia – | Westpac Consumer Sentiment (Jul) | ||||
| NAB Business Confidence (Jun) | |||||
Macro Report
The US dollar continues to climb against its peers, pushing to fresh yearly highs ahead of the greatly anticipated US Consumer Price Index (CPI), which is expected to increase for ten consecutive months. Despite the dollar demand, the US 2-year Treasury yield dropped 3 basis points but remained above the 10-year yield, which fell 10 basis points.
Stocks sank, with the S&P 500 and NASDAQ falling 1% and 2.25%, respectively. Commodity prices, including oil, are under pressure, and gold has declined to 10-month lows at the $1730USD per ounce level.
The AUD/USD currency pair extends losses after being pushed down firmly below the 68-cent level as safe-haven flows drive the dollar. The difference in approaches between the Federal Reserve and the Reserve Bank of Australia (RBA) may mean the pair will continue on its downward trend while the RBA plays catch up. This decline may dampen retail sentiment in the coming months, with consumer confidence waning. Today’s Westpac Consumer Confidence index for July could bring more undesirable news, considering its print of negative figures since December 2021.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6736 | 0.09 |
| AUD/JPY | 92.5280 | -0.03 |
| AUD/CNH | 4.5216 | -0.02 |
| DXY | 108.02 | -1.49 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.995 | -0.105 |
| Aus 10 year | 2.517 | 0.032 |
| Equities | Level | Change (%) |
| S&P 500 | 3854.43 | -1.15 |
| NASDAQ | 11372.60 | -2.26 |
| ASX 200 | 6602.20 | -1.14 |
| Commodities | Level | Change (%) |
| Iron Ore | 115.00 | 0.44 |
| Gold | 1731.6 | -0.52 |
| Brent Crude oil | 107.10 | 0.07 |
