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Conflict Situation: 1. According to Iranian media Fars News: Explosions were heard near Kharg Island, Iran; the cause is unclear. 2. According to Irans SNN news agency: An Iranian oil tanker near Kharg Island was attacked by missiles; no casualties have been reported so far. 3. US Central Command: US forces sank three Iranian Revolutionary Guard oil tankers. 4. According to Saudi satellite television: Sources say Yemeni armed forces have regained control of all areas in the Khais region of Hodeidah province. 5. Israeli military claims to have struck Hezbollah personnel and facilities in southern Lebanon. 6. Iranian Revolutionary Guard: Has struck three ships and three oil tankers linked to the US. 7. Iranian military says it will launch a larger-scale attack on US forces if the US continues its sabotage. 8. Iran denies attack on Isfahan nuclear facility. 9. Israeli media: Israeli forces plan partial withdrawal from southern Lebanon. 10. According to Al Jazeera: Israeli forces attacked the outskirts of Rafid, a town in southern Syria. Strait of Hormuz: 1. UK Maritime Trade Operations Office: Multiple merchant ships in the Gulf were attacked with "crippling firepower." 2. Iranian Revolutionary Guard official: Ships were being "punished" daily in the Strait of Hormuz last month. Other Matters: 1. More than six months into the US-Iran conflict, US intelligence believes Iran has "gained confidence." 2. Agency: The Iranian oil tanker attacked was empty; its engine room was hit. 3. Iranian Foreign Ministry condemns US attack on Iranian oil tanker, warning of consequences. 4. Iraqi Oil Minister: Iraq has increased its oil export capacity to over 3 million barrels per day. 5. Qatari Prime Minister and Lebanese Prime Minister consulted on de-escalating regional tensions and maritime security issues.September 6th - Following the breakdown of US-Canada trade negotiations in late August, the US announced a 50% tariff increase on hundreds of Canadian goods, while Canada announced "equal" retaliatory measures against US goods. According to Canadian sources on the 5th, the latest poll results show that approximately 85% of Canadian respondents support the governments rejection of the terms of the US-proposed agreement, with only about 12.2% opposing it; approximately 80% of respondents support retaliatory measures against the US, the highest level on record. The poll data also shows that 74% of Canadian respondents do not consider the US a trustworthy ally.September 6th - On September 4th local time, the French meteorological department stated that France is experiencing unusually high temperatures for September, with temperatures in many areas approaching 40 degrees Celsius again. The French meteorological service predicts that temperatures along the French Mediterranean coast will reach 36 to 39 degrees Celsius, while temperatures in southeastern France will remain between 35 and 37 degrees Celsius.On September 6, Russian Presidential Aide Ushakov said early on the 6th that Russian President Putin met with US Presidential Envoy Witkov and US President Trumps son-in-law Jared Kushner at the Kremlin on the evening of the 5th. The Russian side emphasized the need to eliminate all the root causes of the Russia-Ukraine conflict. According to Ushakov at a press conference, the meeting lasted 3 hours and 10 minutes, during which the two sides exchanged views on a range of important issues. He described the meeting as "substantial, constructive, extremely frank, and based on mutual trust." Ushakov said that the Russian side provided a comprehensive overview of the progress of the special military operation, demonstrating the significant achievements of the Russian army and expressing confidence in achieving its established objectives. Putin reiterated his willingness to seek a solution to the Russia-Ukraine conflict through political and diplomatic means with the US. Witkov and Kushner promised to convey Putins opinions and assessments regarding a peaceful resolution to the conflict during their subsequent contacts with the Ukrainian side in Kyiv. Ushakov said that the US side was well-prepared for the visit, not only reiterating its concern for ending the military operation as soon as possible but also proposing a series of possible solutions to the conflict. Ushakov said that in addition to the Russia-Ukraine conflict, the two sides also discussed in detail economic issues and major mutually beneficial cooperation projects that Russia and the United States may undertake.On September 6th, Israeli sources reported on the 5th that the Israeli military is preparing to partially withdraw from southern Lebanon and plans to establish a smaller "safe zone" along the Lebanese-Israeli border. The report stated that the Israeli military recently completed the destruction of Hezbollah tunnels beneath the Ali Tahir heights in the Nabatayah region of southern Lebanon, subsequently formulating the aforementioned relocation plan. Israeli security officials said that under the new plan, the Israeli military will withdraw to a position closer to the Lebanese-Israeli border, reducing the depth of its controlled area in southern Lebanon from the current approximately 10 kilometers to 3-4 kilometers. The new deployment line, referred to as the "grey line," will replace the current "yellow line." The report said that this plan still requires approval from the Israeli government. According to the plan, the Israeli military will build new military outposts within the reduced "safe zone" and use these as bases to conduct military operations to protect residential areas in northern Lebanon.

The AUD/JPY exchange rate fluctuates below 90.00 as investors await BoJ action

Alina Haynes

Jan 18, 2023 15:03

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In the early Asian session, the AUD/JPY currency pair is bouncing violently in a narrow range below the resistance level of 90.00. Before the Bank of Japan introduces its first monetary policy of CY2023, the risk barometer indicates a sideways auction (BoJ). The AUD/JPY exchange rate reflects the consolidation of the AUD/USD, indicating an uncertain risk profile.

 

Investors anticipate that the Bank of Japan (BoJ) will not alter its policy stance on Friday, as doing so would increase financial market risk and hinder efforts to boost inflation. Previously, the Bank of Japan (BoJ) announced that the central bank will review the negative side effects of the decade-long ultra-loose monetary policy, generating the impression that the central bank is eager to abandon the easy policy.

 

The experts at Standard Charted expect the Bank of Japan to hold both the policy balance rate and the 10-year yield goal at their present levels of -0.1% and 0%, respectively. The recent decision to expand the 10-year JGB band to +/-50 bps (from +/-25 bps) will be evaluated by policymakers at the December meeting.

 

The replacement of current Governor of the Bank of Japan Haruhiko Kuroda will be widely followed. The next BoJ governor nominee is anticipated to be presented to the Japanese parliament on February 10, Reuters reported on Tuesday. Amamiya, Nakaso, and Yamaguchi are regarded as leading C.banking candidates.

 

Thursday is the expected publication date for Australian employment statistics, which investors are monitoring. The Unemployment Rate is expected to remain constant at 3.4%, according to the majority of economists. Aside from this, the Australian economy must have added 22,500 new jobs to the labor market in December, a down from the prior rises of 64K.