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On January 6, at an emergency meeting of the UN Security Council on January 5, Venezuelas Permanent Representative to the UN, Samuel Moncada, strongly condemned the illegal and unlawful armed action taken by the United States against Venezuela, pointing out that the actions seriously violated the UN Charter and fundamental principles of international law. Moncada also stated that the events met the legal definition of "occupation" under international law, emphasizing that the acquisition of territory or resources by force is unacceptable. Venezuela pointed out that the US actions were driven by resource and geopolitical motives, and that if such actions were tolerated, they would replace the law with power, undermining the foundations of the international order. Moncada urged the Security Council to fulfill its responsibilities, explicitly condemn the use of force against Venezuela, reaffirm the principles of international law, and take measures to de-escalate the situation. He also stressed that Venezuelas state institutions are functioning normally, constitutional order is being maintained, the state maintains effective control over its territory, and the government will continue to defend national sovereignty through diplomatic and legal means.On January 6th, following the capture and deportation of Venezuelan President Nicolás Maduro by the United States, his son, Nicolás Maduro Guerra, announced his "unconditional support" for Delcy Rodriguez, who was declared acting president of Venezuela. This is the first time Maduro Guerra has publicly supported Rodriguez, despite US President Trumps claim that "Rodriguez will work with Washington" to "make Venezuela great again." Initially, Rodriguez described Maduros capture by US forces as an "act of barbarity," but later on Sunday, she changed her stance, adopting a more conciliatory tone and calling for US-Venezuela cooperation on related issues.January 6th - As of 2:30 PM closing, the Shanghai Gold futures contract rose 0.93% to 1002 yuan/gram, the Shanghai Silver futures contract rose 3.17% to 18745 yuan/kilogram, and the SC crude oil futures contract rose 0.30% to 428 yuan/barrel.January 6th - "I am the President of Venezuela, and I was forcibly taken away from my home in Caracas." On the afternoon of the 5th local time, Venezuelan President Maduro and his wife, who were forcibly detained by the United States, appeared in a New York federal court. Both Maduro and his wife pleaded not guilty, and Maduro also made a statement. According to court records, Maduro has hired Barry Joel Pollack, former lawyer for Julian Assange, as his defense attorney. According to the BBC, the indictment released by the prosecution is 25 pages long.On January 6th, German Chancellor André Merz dismissed one of his closest advisors and chief of staff, Jacob Schroth, after a tumultuous eight-month term marked by tactical missteps and controversial statements. Since Merzs election last May, he has made a series of errors, including a failed vote in the Constitutional Court, chaotic pension reforms, and repeated missteps on the international stage. Schroth, 35, served as Merzs chief of staff when he was leader of the minority CDU/CSU parliamentary group and was a key ally in Merzs rise to power. He had close ties to the Trump administration and led Merzs newly formed National Security Council, which aims to coordinate Germanys foreign and defense policies.

Prior to the release of Australian employment data, the AUD/JPY pair attempts to regain 89.00

Alina Haynes

Apr 12, 2023 13:44

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The AUD/JPY pair attempts to reclaim the critical resistance level of 89.00 during the Asian session. Kazuo Ueda, the governor of the Bank of Japan (BoJ), has advocated for an extension of the already decade-long ultra-loose monetary policy in order to consistently achieve an inflation rate above 2%.

 

The decelerating Producer Price Index (PPI) contradicts the optimistic outlook of the Japanese government regarding wage growth. As expected by market participants, the March PPI did not change. The annual PPI came in at 7.2%, which was higher than the consensus estimate of 7.1% but lower than the previous release of 8.1%. The inability of companies to sustain accelerating production rates at factory gates is indicative of weak household demand.

 

Analysts at Commerzbank anticipate that the Japanese Yen will only appreciate over the long term if the current monetary policy is abandoned quickly.

 

Regarding the Bank of Japan's (BoJ) Yield Curve Control (YCC), the IMF has stated that allowing more flexibility in YCC could have repercussions for global markets, but it could also prevent future policy shifts that could result in significant spillovers.

 

Investors are awaiting the March Employment Report for fresh impetus in the Australian Dollar. The market expects the Australian economy to add 20,000 employment, which is less than the previous estimate of 64.6K. While the Unemployment Rate is expected to rise to 3.6% from 3.5% in February, it is anticipated that the Unemployment Rate will increase to 3.6%.

 

Governor Philip Lowe of the Reserve Bank of Australia (RBA) has left the door open for additional rate hikes if Australian inflation persists, so the publication of stronger-than-expected employment gains could reignite fears of additional rate hikes.