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.
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
Key Data Being Released Today
| Japan – | GDP (QoQ) (Q2) | ||||
| China – | Industrial Production (YoY) (Jul) | ||||
| Chinese Unemployment Rate | |||||
| Canada – | Manufacturing Sales (MoM) (Jun) | ||||
| Wholesale Sales (MoM) (Jun) | |||||
Macro Report
The Aussie dollar surged last week following a softer-than-expected US Consumer Price Index (CPI) and a weaker US dollar. Lower than anticipated inflation report data relieved some inflationary and growth concerns while altering market expectations for the Fed’s September rate decision from 75 to 50 basis points.
Headline US CPI sent equities higher and Treasury yields lower. The US 10-year treasury yield dipped 5 basis points to 2.83% end of week as market participants digested the week’s economic data.
The Saturday release of University of Michigan Consumer Sentiment numbers also reflected an upbeat mood, coming in at 55.1 compared to the expectation of 52.5 and the previous release of 51.5.
Looking ahead to this week, we have a plethora of data releases. Due today from China; Industrial production performance and retail sales data.
Later in the week, US retail sales and FOMC meeting minutes are due. The RBA will release its meeting minutes tomorrow, and the Australia Bureau of Statistics (ABS) will report July employment data on Thursday. Additionally, the Reserve Bank of New Zealand is expected to raise its official cash rate (OCR) by 50 basis points on Wednesday.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.7122 | 0.01 |
| AUD/JPY | 95.05 | -0.03 |
| AUD/CNH | 4.7901 | 0.09 |
| DXY | 105.6770 | 0.04 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.83 | 0.0390 |
| Aus 10 year | 3.42 | 0.1230 |
| Equities | Level | Change (%) |
| S&P 500 | 4280.15 | 1.73 |
| NASDAQ | 13047.19 | 2.09 |
| ASX 200 | 7032.51 | -0.54 |
| Commodities | Level | Change (%) |
| Iron Ore | 113.00 | -0.44 |
| Gold | 1817.10 | 0.09 |
| Brent Crude oil | 97.80 | -0.30 |
