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On April 6, local time, Iran claimed that it launched three rounds of missiles at Israeli territory within 20 minutes. Israel stated that Iran launched at least 10 missiles carrying cluster warheads in the three rounds of attacks.On April 6, Ali Velayati, foreign affairs advisor to Irans Supreme Leader, warned the United States on April 5 that if it "makes another mistake," the Iranian-led resistance front would retaliate by blocking the Bab el-Mandeb Strait. Velayati posted on social media that day: "Today, the unified command of the resistance front views the Bab el-Mandeb Strait as much as the Strait of Hormuz. If the White House makes another foolish mistake, it will soon realize that with just one move, global energy and trade flows can be disrupted."The yield on Japans 20-year government bonds rose to 3.325%.On April 6, a Democratic member of the U.S. House of Representatives warned that U.S. military action in Iran is making the American people "less safe," while also describing Trumps recent profanity-laden rhetoric as "insanity." Jim McGovern, the highest-ranking Democrat on the House Rules Committee, wrote, "When the United States violates international humanitarian law, we are inviting other countries to follow suit. This makes us all unsafe." He noted that international human rights law experts are "raising alarms about U.S. actions in war," including serious violations of the Geneva Conventions and international law, as well as possible "war crimes." In another post, McGovern also described Trumps recent threats as utterly insane and extremely dangerous. "This is simply insanity. The President of the United States needs treatment."On April 6th, following the "Science and Technology Exchange Connect" initiative, the Shenzhen Branch of the State Administration of Foreign Exchange launched another foreign exchange facilitation measure, the "Science and Technology Salary Connect" pilot program. This program focuses on providing convenient two-way foreign exchange services for the salaries of employees of key state-supported units such as high-quality enterprises, universities, and research institutions. This facilitates the cross-border flow of talent in the Guangdong-Hong Kong-Macao Greater Bay Area and supports the construction of Shenzhen as an international science and technology innovation center. It is understood that qualified employees can, through public-private partnerships with their employers, avoid submitting or repeatedly submitting documents when processing salary purchase and settlement transactions at pilot banks. This model integrates relevant foreign exchange facilitation policies, leverages corporate credit enhancement, and significantly improves the efficiency and convenience of cross-border salary processing for employees with foreign work experience, providing high-quality foreign exchange services to support Shenzhens talent attraction efforts.

AUD/USD Recovers from 0.6900 as Australian Retail Sales Decline Less than Expected

Daniel Rogers

Feb 06, 2023 16:03

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As the Australian Bureau of Statistics reported a smaller-than-expected fall in Retail Sales for the fourth quarter of CY2022, the AUD/USD pair has attempted to recover to approximately 0.6900. The economic figures have decreased by 0.2%, when the market anticipated a 0.6% decline.

 

The Reserve Bank of Australia's (RBA) anticipated release of its interest rate decision on Tuesday will be the most significant event that will generate volatility in the Australian Dollar. As the Australian Consumer Price Index (CPI) has not yet reached its peak, the outlook for the policy stance is quite pessimistic. The rate of inflation in Australia reached a new high of 7.8 percent in the fourth quarter of CY2022.

 

Deutsche Bank Australia analysts believe that the RBA will likely hike the Official Cash Rate (OCR) to 4.1%, citing the most recent inflation update, which revealed a slightly higher-than-anticipated 7.8% increase in the CPI. According to Forbes Advisor, "while the RBA will likely move more slowly in 2023 than in 2022, we now estimate four additional 25 basis point increases this year: 25 basis points in February and March, and 25 basis points at the May and August meetings."

 

Following a significant surge in Nonfarm Payrolls (NFP) data in the United States, the risk profile is currently favoring safe-haven assets. The US Dollar Index (DXY) intends to raise its auction profile over 102.50. S&P500 futures maintained their downward trend during the Asian session, signaling a further decline in market participants' risk appetite. The yield on 10-year Treasury notes has risen to approximately 3.57 percent.