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On May 12th, Futures reported that the China Coastal Coal Freight Index (CBCFI) was at 1207.64 points, down 3.2%. The hot weather in central and eastern China continued, and with positive expectations for summer coal-fired power generation, coal prices remained high. However, downstream end-user acceptance was generally low, with long-term contracts dominating transport. This led to a decrease in cargo volume in the transportation market and a decline in coastal coal freight rates.Hungarian Finance Minister nominee Kármán: Fiscal savings are expected to be achieved by ending overpriced public procurement, abolishing propaganda, reducing debt service costs, and utilizing EU funds.On May 12, Chinese President Xi Jinping held talks with Tajik President Emomali Rahmon in Beijing.May 12 – Canada hopes to reach free trade agreements with the Philippines and the broader Southeast Asian group this year to strengthen business ties with the region and expand trade beyond the United States. Canadian International Trade Minister Manidel Sidu visited the Philippines on Tuesday, meeting with Philippine Trade Secretary Christina Roque and Finance Secretary Frederic Go. After the meetings, Sidu stated, “The negotiations are progressing very well.” Sidu noted that Canada has also joined the Luzon Economic Corridor project, supported by the United States and Japan, with Canada contributing C$2 million. He indicated that potential investment areas include data centers, logistics, and energy.On May 12, Premier Li Qiang sent a congratulatory message to Péter Majolóri, congratulating him on assuming office as Prime Minister of Hungary. Li Qiang stated that China has always regarded Hungary as an important partner in Europe and is willing to work with Hungary to carry forward traditional friendship, enhance political mutual trust, deepen pragmatic cooperation, and promote the steady and long-term development of China-Hungary relations to better benefit the people of both countries.

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.


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