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
| United Kingdom | – | RICS House Price Balance (Sep) | ||||
| GDP | ||||||
| United States | – | Industrial Production (MoM) (Aug) | ||||
| Manufacturing Production (MoM) (Aug) | ||||||
| Monthly GDP 3M/3M Change | ||||||
| Trade Balance (Aug) | ||||||
| Eurozone | – | Industrial Production (MoM) (Aug) | ||||
| United States | – | Core PPI (MoM) (Sep) | ||||
| PPI (MoM) (Sep) | ||||||
Macro Report
The Aussie dollar continues to struggle against the exceptionally strong US dollar amid the current environment of deteriorating market sentiment. Yesterday’s Westpac Consumer Sentiment data showed a declined to -0.9% in October from 3.9% the prior month. While NAB’s Business Confidence came in at 5 versus a previous month’s print of 10. Compounded with a dovish RBA and worrying signals from Australia’s primary trading partner – China, the Aussie dollar remains under significant pressure.
The AUD/USD pair declined for a fourth consecutive day yesterday, reaching a low of 0.62472 as the US dollar was able to maintained its strength on Bank of England Governor Andrew Bailey’s announcement of the Financial Policy Committee’s decision to intervene in the financial market due to volatility. Comments from the Governor underpinned market risk-aversion, elevating the US dollar while sending US equities tumbling and treasury yields higher.
The S&P 500 dropped 0.65% to 3,588.84, and The Nasdaq Composite declined by more than 1% to 10,426.19.
Markets remained worried ahead of tonight’s US PPI data, followed by tomorrow’s CPI figures. US PPI (MoM) is expected to rise by 0.2% compared to the previous print of -0.1%. Should PPI figures print lower than expected, it could be perceived as positive news on its own, suggesting a weakening wholesale inflation. However, it may not necessarily mean we will see a softer US CPI number.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) | |
| AUD/USD | 0.6276 | 0.06 | |
| AUD/JPY | 91.5020 | 0.01 | |
| AUD/CNH | 4.4957 | -0.16 | |
| DXY | 113.2210 | 0.07 | |
| Rates | Yield (%) | Change | |
| US 10 Year | 3.95 | 0.060 | |
| Aus 10 Year | 4.03 | -0.003 | |
| Equities | Level | Change (%) | |
| S&P 500 | 3,588.84 | -0.65 | |
| NASDAQ | 10,426.19 | -1.10 | |
| ASX 200 | 6,645.00 | -0.34 | |
| Commodities | Level | Change (%) | |
| Iron Ore | 96.97 | -1.03 | |
| Gold | 1,686.00 | 0.64 | |
| Brent Crude oil | 93.68 | -2.61 |
