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On April 12, Reserve Bank of New Zealand (RBNZ) Governor Anna Brehman stated that the RBNZ will soon announce measures to increase the transparency of its monetary policy decisions. Currently, the RBNZs Monetary Policy Committee determines the official cash rate either through consensus or by vote, but the individual members decision-making processes are not disclosed. When asked on Sunday whether she supported making the voting results public, Brehman said, "This is a decision made between the Monetary Policy Committee and the Minister for Finance. We have completed the relevant procedures and will announce any possible adjustments soon." Brehman joined the RBNZ from the Swedish Federal Reserve in early December. The RBNZ is considered one of the most transparent central banks globally. She now holds press conferences after each interest rate decision (instead of just quarterly), and from 2027 onwards, the Monetary Policy Committee will make eight interest rate decisions annually, up from the current seven.According to Irans Tasnim News Agency on the 12th, the time, place, and plan for the next round of negotiations between Iran and the United States have not yet been announced.With the US-Iran talks concluded, US Vice President Vance has left Pakistan, and the Iranian delegation will also depart on the 12th.April 12 – To promote the peaceful development of cross-strait relations and enhance the well-being of compatriots, the Taiwan Affairs Office of the CPC Central Committee, in consultation with relevant departments, has been authorized to issue the following policy measures: Explore the establishment of a regular communication mechanism between the Kuomintang (KMT) and the Communist Party of China (CPC). Establish a formalized platform for two-way exchanges between young people of the two parties. Promote water, electricity, gas, and bridge connections between coastal Fujian and Kinmen and Matsu, where conditions permit, to enhance the interests and well-being of the people of Kinmen and Matsu. Promote the full resumption of normalized direct cross-strait air passenger flights to further facilitate personnel exchanges between the two sides. Establish a communication mechanism on the basis of adhering to the "1992 Consensus" and opposing "Taiwan independence" to facilitate the import of Taiwanese agricultural and fishery products that meet inspection and quarantine standards into the mainland.April 12 - According to Iranian sources early this morning, the Iran-US negotiations ended minutes earlier, with no agreement reached due to "US greed and ambition."

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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