• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Guatemalan government: The tariffs announced by the United States violate the provisions of the Central American Free Trade Agreement.Japans five-year government bond yield fell 9.5 basis points to 0.98%, the lowest level since February 10.Futures news on April 3, crude oil trend fluctuated narrowly, finished product shipments weakened, fuel oil market players held prices and waited and watched, downstream orders were dominated by rigid demand after phased stocking up, and refinery shipments were lukewarm. It is expected that the overall market trading will be stable today, with a few narrow adjustments.On April 3, CICC pointed out that Trump announced "reciprocal tariffs" on April 2, which exceeded market expectations. Reciprocal tariffs use a combination of "carpet-style" tariffs and "one country, one tariff rate", covering more than 60 major economies. Calculations show that if these tariffs are fully implemented, the effective tariff rate of the United States may rise sharply by 22.7 percentage points from 2.4% in 2024 to 25.1%, which will exceed the tariff level after the implementation of the Smoot-Hawley Tariff Act in 1930. CICC believes that reciprocal tariffs may increase uncertainty and market concerns and aggravate the risk of "stagflation" in the US economy. Calculations show that tariffs may push up US PCE inflation by 1.9 percentage points and reduce real GDP growth by 1.3 percentage points, although they may also bring in more than $700 billion in fiscal revenue. Faced with the risk of "stagflation", the Federal Reserve can only choose to wait and see, and it may be difficult to cut interest rates in the short term. This will further increase the risk of economic downturn and increase the pressure on the market to adjust downward.RBA Financial Stability Assessment Report: US tariffs may have a "chilling effect" on investment and spending.

AUD/USD Struggles for Near-Term Direction and Flattens Below the 0.7100 Mark

Alina Haynes

May 27, 2022 09:30

During the early European session, the AUD/USD pair drew some dip buyers at the mid-0.7000s, but unable to profit on the move. The pair was last seen trading a few pips below the 0.7100 level, almost flat for the day.

 

In the lack of any shocks in the most recent FOMC meeting minutes, the possibility that the Fed may stop the rate hike cycle later this year weighed on US Treasury bond rates. This, along with a robust equities market rebound, weakened the safe-haven US currency and boosted the risk-averse Australian dollar.

 

However, the deteriorating global economic picture should temper any optimism. Investors continue to be concerned that a more aggressive effort by major central banks to curb inflation and the Russia-Ukraine conflict might pose threats to the global economy. In turn, this functioned as a tailwind for the dollar and limited the AUD/USD pair.

 

Since the beginning of this week, spot prices have oscillated within a wider trading range, even from a technical standpoint. The price response appears to indicate that markets have already priced in the Reserve Bank of Australia's hawkish indication that a larger interest rate rise in June remains conceivable. This demands bullish traders' prudence.

 

Now, market investors await the US data calendar, which includes the publication of Prelim Q1 GDP, Weekly Initial Jobless Claims, and Pending Home Sales. The data might impact USD price dynamics and create momentum for the AUD/USD pair. Traders will continue to seek clues for short-term opportunities from the wider risk mood.

AUD/USD

image.png