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On March 16th, the Ministry of Natural Resources and the National Forestry and Grassland Administration jointly issued a notice proposing to further improve the guarantee of natural resource elements. Among them, the new logic for land supply set by the Ministry of Natural Resources has been misinterpreted by many as "no more land will be approved for real estate projects." Firstly, this misunderstanding stems from a lack of understanding of the technical term "newly added construction land." It specifically refers to land converted from agricultural land and unused land into construction land, a strictly controlled and scarce indicator. Given its limited availability, prioritizing it for livelihood projects and major industrial projects is reasonable. The land for real estate development that we usually talk about mostly comes from existing construction land, such as urban renewal, redevelopment of inefficient land, urban village renovation, and state-owned construction land already reserved by the government. Secondly, there is no need to worry about a land supply shortage. After previous preparations, local governments have sufficient reserves of state-owned construction land to fully meet normal development needs. The pace of land supply through bidding and auction will not change and is not directly related to the trends in the new and second-hand housing markets.Royal Bank of Canada raised its price target for Micron Technology (MU.O) from $425 to $525.March 16 - The US dollar broke through the key psychological level of 60 against the Philippine peso on Monday, hitting a new intraday record high. A report from a FX strategist at OCBC Global Research stated that Asian currencies are typically sensitive to factors such as oil price fluctuations, global risk sentiment, and a weaker US dollar. Rising oil prices are creating trade headwinds for several regional economies, further increasing pressure on Asian currencies, including the Philippine peso.Samsung Electronics shares rose 2.7%.SK Hynix led the gains among South Korean chip stocks, rising 6.5% in late trading.

AUD/USD falls approaching 0.7200 despite the former RBA governor's aggressive forecasts

Alina Haynes

Jun 08, 2022 11:59

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Bears and buyers continue to fight for position around 0.7220-25 as sentiment is mixed and investors remain cautious ahead of the week's big data/events. In doing so, the Australian duo struggles to defend the hawkish remarks of former Reserve Bank of Australia (RBA) Governor Ian Macfarlane.

 

Ex-RBA Governor Macfarlane warned early Wednesday morning about chronically rising inflation and the need to drastically increase interest rates. The former policymaker also stated, "There is sufficient scarcity in Australia and the United States to maintain a high inflation rate."

 

In contrast, China's Vice Commerce Minister Wang Shouwen joined China's Vice Finance Minister Zou Jiayi in reiterating concerns about a global economic downturn and a decline in demand. Recent consensus among policymakers held that the rise of global demand is slowing.

 

It's worth noting that a rebound in US Treasury rates and apprehension ahead of Thursday's European Central Bank (ECB) meeting, as well as Friday's US Consumer Price Index (CPI) for May, tend to stifle the AUD/USD pair's movements.

 

In spite of this, 10-year US Treasury note rates jump two basis points (bps) to 2.99 percent the day after breaking a six-day downward trend. A record decline in the US trade deficit and optimism on the US budget appear to have prompted a recall of US Treasury bond sellers. The US trade deficit for April decreased 19.1 percent from the previous day to USD87.1 billion.

 

Other market optimists were defended by US Treasury Secretary Janet Yellen and optimism for a quicker economic rebound in China. Tuesday, US Treasury Secretary Yellen spoke before the Senate Finance Committee about the Fiscal Year 2023 Budget while stating that the US economy faced problems from "unsustainable levels of inflation" and supply chain disruptions. The official said, "An adequate budget is necessary to support the Fed's efforts to control inflation without damaging the labor market."

 

It should be noted that World Bank (WB) President David Malpass's warning that faster-than-anticipated tightening might force certain nations into a debt crisis akin to that of the 1980s appears to have impacted on the quotation as of late. The risk-negative news from Ukraine may follow a similar trajectory. Politico reported that Ukraine has not yet achieved a deal with Russia or Turkey to enable the safe passage of its grain ships in the Black Sea, casting doubt on a U.N. initiative to build a crucial food corridor.

Technical Evaluation

A two-week-old support line protects AUD/USD buyers at 0.7205. However, the 200-day moving average and the recent top, located around 0.7255 and 0.7285, may challenge the Aussie pair's upside before the bulls regain control.


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