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Goldman Sachs downgraded Indonesian stocks to underweight.On January 29th, Tesla CEO Elon Musk stated during an earnings call on January 28th that the company will cease production of the Model S and Model X vehicles next quarter. "Its time to honor the Model S and Model X projects as we truly move towards a future centered on self-driving technology," Musk said. Musk also revealed that Tesla is replacing the Model S and Model X production lines at its Fremont, California factory with Optimus production lines, with a long-term goal of achieving an annual production capacity of one million robots.1. International precious metals futures generally closed higher. COMEX gold futures rose 6.46% to $5411.00 per ounce, and COMEX silver futures rose 10.06% to $116.62 per ounce. The Federal Reserve paused interest rate cuts but released expectations of future easing, coupled with market bets on a dovish Fed chair candidate, highlighting the safe-haven and inflation-hedging properties of precious metals. Meanwhile, the CME Groups adjustment of margin parameters for some precious metals futures may also exacerbate short-term volatility. 2. The WTI crude oil futures contract closed up 1.78% at $63.5 per barrel; the Brent crude oil futures contract rose 1.56% to $67.63 per barrel. Trump warned Iran to reach an agreement as soon as possible, citing potential risks to Iranian oil supply. Meanwhile, data from the U.S. Energy Information Administration showed that U.S. crude oil inventories fell by 2.295 million barrels last week, a larger-than-expected decline, tightening supply and supporting higher oil prices. 3. Most London base metals rose, with LME tin up 3.52% to $56,795/ton, LME aluminum up 1.59% to $3,263.5/ton, and LME nickel up 1.12% to $18,440/ton. LME copper and zinc saw slight gains, while LME lead fell slightly. 4. US Treasury yields were mixed. The 2-year Treasury yield was unchanged at 3.596%, the 3-year yield fell 0.56 basis points to 3.640%, the 5-year yield rose 25.90 basis points to 3.828%, the 10-year yield rose 0.20 basis points to 4.243%, and the 30-year yield fell 0.31 basis points to 4.855%. 5. The three major U.S. stock indexes closed mixed. The Dow Jones Industrial Average rose 0.02% to 49,015.6 points, the S&P 500 fell 0.01% to 6,978.03 points, and the Nasdaq Composite rose 0.17% to 23,857.45 points. Large-cap tech stocks were mixed: the Wind U.S. Tech Giants Index rose 0.19%, Nvidia rose 1.59%, and Google, Microsoft, and Tesla all saw slight gains. Most semiconductor stocks closed higher, with Intel rising 11%. The Nasdaq China Golden Dragon Index rose 0.32%. U.S. Treasury yields rose. The Federal Reserve kept the federal funds rate unchanged and raised its assessment of economic growth. The market predicts that the Fed will keep interest rates unchanged until the end of Powells term. 6. Major European stock indices all fell. Germanys DAX index fell 0.29% to 24,822.79 points, Frances CAC40 index fell 1.06% to 8,066.68 points, and the UKs FTSE 100 index fell 0.52% to 10,154.43 points. The Stoxx Europe 600 index fell 0.75%. US President Trump again threatened Iran, saying the next strike would be more severe, putting pressure on market risk appetite.Teslas CFO: After utilizing internal resources, the company may finance capital expenditures through further debt or other means.Tesla CFO: As Optimus production and expansion begin, capital expenditures are being invested in computing to train Optimus.

NZDUSD is negative below 0.5900 despite the introduction of USD buying

Alina Haynes

Nov 07, 2022 17:58

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Following a modest bearish gap opening to the 0.5855-0.5850 range on Monday, the NZDUSD pair experiences some buying, but is unable to capitalize on the move. Spot prices retreat a few pips from the day's high and continue on the defensive below the 0.5900 mark as the US Dollar recovers minor territory at the start of the European session.

 

On the first day of the new week, the USD regains some upward momentum and recovers a bit of Friday's fall following the announcement of the NFP. In fact, the monthly US jobs report's mixed results fueled rumors that the Federal Reserve may slow the pace of future rate hikes, which weighed heavily on the US dollar. Nonetheless, higher US Treasury bond yields and a softer tone help limit dollar losses and act as a drag for the NZDUSD pair.

 

Concerns of headwinds stemming from China's intention to maintain its economically harmful zero-COVID policy have weakened investor confidence. This occurs in the midst of the protracted Russia-Ukraine conflict and leads to escalating fears regarding the worsening global economic crisis. Even from a technical perspective, bullish traders should be mindful of the emergence of fresh selling ahead of the middle of the 0.59 range. Before positioning for any significant NZDUSD pair gain, it is prudent to await sufficient follow-through buying.

 

The United States is not anticipated to release any market-moving economic data, leaving the USD vulnerable to US bond yields. Aside from this, traders will take cues from the overall risk sentiment of the market in order to capitalize on short-term opportunities involving the risk-sensitive New Zealand dollar. However, the mixed underlying environment may cause short-term traders to remain on the sidelines until the release of the latest US consumer inflation data on Thursday.