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On September 13th, the U.S. National Highway Traffic Safety Administration (NHTSA) announced that Volvo Cars will recall 1,355 2026 model year XC90 MHEV, XC60 MHEV, V90CC MHEV, and V60CC MHEV vehicles. The recall is due to a possible damage to the torsion bar in the front seatbelt retractors during production. Dealers will replace both front seatbelt retractors free of charge.On September 13, Zhijie Automobile officially announced that the first batch of deliveries of the new Zhijie R7 and Zhijie S7 officially started at the Zhijie Super Factory.On September 13, Robert Kaplan, vice president of Goldman Sachs Group, said that investors are beginning to question whether they have invested too much money in the United States, and more and more financial institutions are looking to Europe and Asia for growth opportunities. Kaplan said on Friday that some investors are considering whether they should start hedging the US dollar to protect against exchange rate fluctuations. "What has happened since January is that people are still optimistic about the United States, but they are starting to say: I think our allocation to the United States is too high." Kaplan said. "We are having hedging conversations with people around the world, and some of them have never hedged the US dollar in the past 15 years." Kaplan pointed out that although investors still regard the United States as a safe haven for funds, "they have a little more confusion about the US institutional framework."Russian Ministry of Defense: Air defense systems shot down 42 Ukrainian drones in the early hours of Saturday morning.1. The three major U.S. stock indices closed mixed, with the Dow Jones Industrial Average down 0.59%, the S&P 500 down 0.05%, and the Nasdaq up 0.44%, hitting new all-time highs. Merck and Sherwin-Williams fell over 2%, leading the Dow lower. The Wind S7 Index rose 1.14%, with Tesla up over 7% and Apple up over 1%. Chinese concept stocks saw mixed results, with JinkoSolar up over 6% and Douyu down over 4%. 2. U.S. Treasury yields rose across the board, with the 2-year Treasury yield up 0.99 basis points to 3.549%, the 3-year Treasury yield up 1.94 basis points to 3.527%, the 5-year Treasury yield up 3.81 basis points to 3.633%, the 10-year Treasury yield up 4.57 basis points to 4.070%, and the 30-year Treasury yield up 2.69 basis points to 4.681%. 3. International precious metal futures generally closed higher. COMEX gold futures rose 0.19% to $3,680.70 per ounce, a weekly gain of 0.75%. COMEX silver futures rose 1.26% to $42.68 per ounce, a weekly gain of 2.71%. 4. International oil prices rose slightly. The main contract for US crude oil closed up 0.37% at $62.60 per barrel, a weekly gain of 1.18%. The main contract for Brent crude oil rose 0.77% to $66.88 per barrel, a weekly gain of 2.11%. 5. London base metals rose across the board, with LME zinc futures up 1.93% at $2,956.00/ton, up 3.32% for the week; LME nickel futures up 1.52% at $15,380.00/ton, up 0.95% for the week; LME lead futures up 1.13% at $2,019.00/ton, up 1.71% for the week; LME aluminum futures up 1.03% at $2,701.00/ton, up 3.86% for the week; LME tin futures up 0.74% at $34,955.00/ton, up 1.87% for the week; and LME copper futures up 0.13% at $10,064.50/ton, up 1.69% for the week.

As Australian monthly inflation declines to 6.8%, the AUD/JPY exchange rate approaches 87.80

Alina Haynes

Mar 29, 2023 14:36

AUD:JPY.png 

 

After the Australian Bureau of Statistics reported a further decline in the Consumer Price Index (CPI) for the previous month, the AUD/JPY pair dropped significantly to near 87.80. (Feb). The economic data came in at 6.9%, which was lower than both the consensus estimate of 7.1% and the previous release of 7.4%.

 

Australian Retail Sales increased by 0.2% on Tuesday, which was below the consensus estimate of 0.4% and the previous release of 1.9%. A weaker-than-expected retail demand suggests that households are bearing the burden of higher inflation and are having difficulty compensating for the impact of inflated products with their present purchasing power.

 

The Reserve Bank of Australia (RBA) would be encouraged to maintain monetary policy at its April meeting as a result of the synergistic effect of declining Retail Sales and the Consumer Price Index. In March, RBA Governor Philip Lowe increased the Official Cash Rate (OCR) to 3.60 percent. Investors should be aware of this fact.

 

Every subsequent Friday, the China Bureau of Statistics will disseminate Manufacturing and Non-Manufacturing PMI data. Following the abolition of pandemic controls, the Chinese economy is promoting development through monetary measures, so market participants anticipate a respectable performance. Australia is China's largest trading partner, and China's accelerating economic activity will also benefit the Australian Dollar.

 

As the target for sustainable inflation has not yet been attained, the former governor of the Bank of Japan, Haruhiko Kuroda, remained extremely pessimistic about future monetary policy regarding the Japanese Yen. "It is premature to discuss a withdrawal from easy monetary policy," he continued. And "More time is required to consistently and sustainably reach the price target."