EUR/USD 1.17749
0.445%
Gold 4711.96
0.531%
Oil 92.849
-1.933%
USD/JPY 156.655
-0.175%
GBP/USD 1.36240
0.543%
GBP/JPY 213.432
0.380%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Sources say the meeting between U.S. Vice President Vance and the Qatari Prime Minister will cover U.S.-Qatar relations and the situation in Iran, with a focus on the liquefied natural gas market and regional stability.On May 8th, JPMorgan analysts stated that U.S. gasoline prices "could very well" rise to $5 per gallon as refineries prioritize jet fuel production over other petroleum products. In a report released Friday, the analyst team noted that in Asia, currently the region hardest hit by the energy crisis, the price shock triggered by the Iran war is spreading significantly faster in the refined product markets, such as jet fuel and diesel, than in the crude oil market. If refinery operations continue to be constrained by limited crude oil supply, fuel prices could become "the primary channel for demand destruction." "In this scenario, even with a significant widening of refined product crack spreads, crude oil prices could still stabilize around $100 per barrel. At that point, the next phase of the shock will no longer resemble a traditional crude oil price surge, but rather a refining and end-fuel supply crisis." Currently, jet fuel is the most significantly affected product, prompting refineries to maximize jet fuel production, which typically means reduced diesel production. The ripple effect is also spreading to gasoline production. Analysts say, "This may explain why U.S. gasoline prices have risen to $4.55 per gallon, and why the risk of gasoline prices rising to $5 can no longer be ignored."Irans Tasnim News Agency: Iran will respond if the US attempts to interfere with Iranian vessels.The Islamic Republic of Iran Broadcasting (IRIB) reported that the foreign ministers of Iran and Turkey spoke by phone. Iranian Foreign Minister Araqchi briefed his Turkish counterpart on recent regional developments, particularly the repeated violations of the April 8 ceasefire agreement by the United States. He stated that the insecurity in the Persian Gulf and the region stems from US actions.The German DAX 30 index closed down 320.55 points, or 1.30%, at 24,350.99 on Friday, May 8th; the UK FTSE 100 index closed down 40.98 points, or 0.40%, at 10,235.97 on Friday, May 8th; and the French CAC 40 index closed down 89.51 points, or 1.09%, at 8,112.57 on Friday, May 8th. The Stoxx 50 index closed down 58.40 points, or 0.98%, at 5914.25 on Friday, May 8; the Spanish IBEX 35 index closed down 161.58 points, or 0.90%, at 17890.42 on Friday, May 8; and the Italian FTSE MIB index closed down 18.51 points, or 0.04%, at 49272.50 on Friday, May 8.

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