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On September 10, Lu Lei, Vice Governor of the Peoples Bank of China, introduced at a press conference held by the State Council Information Office on the theme of "Starting the 15th Five-Year Plan" that overseas entities currently hold more than 11 trillion yuan of RMB financial assets in China, and central banks or monetary authorities of more than 80 countries and regions have included RMB in their foreign exchange reserves; Panda bonds have been issued for more than 1.3 trillion yuan, with issuers covering 26 countries and regions across five continents.Enterprise Singapore: For the week ending September 9, Singapores light distillate fuel oil inventories increased by 1.196 million barrels to 11.874 million barrels, a one-month high; middle distillate fuel oil inventories increased by 326,000 barrels to 8.237 million barrels, a two-week high; and fuel oil inventories decreased by 98,000 barrels to 20.355 million barrels, a two-week low.On September 10, Li Bin, Deputy Director and Spokesperson of the State Administration of Foreign Exchange, introduced at a press conference held by the State Council Information Office on the theme of "Starting the 15th Five-Year Plan" that my countrys direct investment has achieved basic convertibility, and cross-border securities investment has formed a cross-border investment system mainly based on institutional investor system, interconnection mechanism, and direct market access for overseas investors. Macro-prudential management is implemented across the board for cross-border financing.On September 10th, at a press conference held by the State Council Information Office, Cong Lin, Deputy Director of the State Financial Regulatory Commission, stated that the Commission will guide financial institutions to adapt to the needs of consumption upgrading, support the expansion of commodity consumption, and continuously unleash the potential of service consumption and new types of consumption. The Commission will adhere to a close integration of investment in goods and investment in people, strengthen financial support for key areas of the "two major projects," "two new projects," "six networks," and the 109 major projects of the "15th Five-Year Plan," and strive to promote stable foreign trade, supporting the export of intermediate goods, the construction of overseas warehouses, and the development of cross-border e-commerce.On September 10th, at a press conference held by the State Council Information Office, Li Bin, spokesperson and deputy director of the State Administration of Foreign Exchange, stated that during the 15th Five-Year Plan period, my countrys foreign trade exports and imports will develop in a more coordinated manner, outward investment and inward investment will further expand, and the balance of payments is expected to remain basically balanced. In the future, the State Administration of Foreign Exchange will better coordinate development and security, continuously promote the facilitation of cross-border trade and investment to enhance the momentum of foreign-related economic development, and promote a steady increase in the scale and continuous optimization of the balance of payments. It will also continuously improve macro-prudential management, strengthen the monitoring and early warning of cross-border capital flows, continuously enhance the vitality and resilience of the foreign exchange market, and prudently respond to external shock risks.

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.