EUR/USD 1.16306
-0.004%
Gold 4487.84
0.070%
Oil 91.667
0.820%
USD/JPY 159.924
0.162%
GBP/USD 1.34641
0.072%
GBP/JPY 215.331
0.236%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Canadian Minister for Canada-US Trade, LeBlanc: Discussed reductions in tariffs for high-value industries.Canadian Minister for Trade with the United States, Robert LeBlanc, has raised concerns about the U.S. tariffs on automobiles, steel, aluminum, and softwood.On June 3, local time, the U.S. Central Command stated that on June 2, local time, the U.S. military took action against an oil tanker in the Arabian Gulf, rendering it unable to navigate. The U.S. Central Command stated that the Botswana-flagged oil tanker "Lexie" was en route to Kharg Island, Iran. The U.S. stated that the ship repeatedly ignored U.S. warnings and instructions within 24 hours and failed to comply with relevant blockade measures. Subsequently, a U.S. military aircraft fired a Hellfire missile at the ships engine room, causing the tanker to lose power and be unable to continue its journey to Iran. The U.S. Central Command stated that since the implementation of the blockade measures targeting maritime traffic to and from Iranian ports on April 13, the U.S. military has disabled six commercial vessels and diverted 122 ships. The U.S.-Iran ceasefire is currently ongoing.According to the Associated Press: Acting U.S. Attorney General Todd Branch said the Trump administration will abandon plans to establish an $1.8 billion fund to “compensate” the Republican president’s ally after facing widespread political backlash and court defeats.The API reported that U.S. crude oil production increased by 185,000 barrels per day in the week ending May 29, compared with 629,000 barrels per day in the previous week.

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

Alina Haynes

Jun 08, 2022 11:59

 截屏2022-06-08 下午12.00.41.png

 

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.


Suggestion