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On May 30th, it was reported that on May 29th, Zhang Zhigang, Chairman and Party Secretary of the State Grid Corporation of China, and Zhang Wenfeng, General Manager and Deputy Party Secretary, held talks with Qian Chaoyang, Chairman and Party Secretary of China Southern Power Grid Co., Ltd., at the companys headquarters. Both sides stated that State Grid and China Southern Power Grid share common responsibilities in ensuring energy security, promoting energy transformation, building a strong energy nation, and serving the overall economic and social development. They agreed to focus on the 15th Five-Year Plan and further strengthen communication and deepen cooperation in areas such as technological innovation, policy recommendations, mechanism building, the electricity market, and industrial innovation to better promote high-quality development of the energy and power sector.May 30th - Data released today by the National Energy Administration shows that in April, my country issued 237 million green electricity certificates, of which 74.85% were tradable. In April, 71.1 million green certificates were traded nationwide, including 29.72 million green certificates traded for green electricity.On May 30th, it was reported that the U.S. 24th Marine Expeditionary Unit announced on the 29th that it had officially assumed command of the U.S. Southern Commands area of responsibility—specifically, the waters surrounding Latin America. According to the announcement, the unit has deployed over 1,300 Marines and sailors and has completed the handover from the previously deployed 22nd Marine Expeditionary Unit.On May 30th, Qu Guochun, Director of the Equipment Industry Development Center of the Ministry of Industry and Information Technology, stated at the 2026 Equipment Power Forum that after ten years of development, my countrys high-end equipment industry has seen "accelerated progress in catching up, a gradual increase in keeping pace, and a rapid emergence of leaders." The number of key areas at the worlds leading and advanced levels has reached 60.8%, and the industrys scale accounts for over 60% of the overall equipment manufacturing industry. The international competitiveness of the high-end equipment industry has significantly improved. Specifically, intelligent connected new energy vehicles, rail transit equipment, power equipment, information and communication equipment, new energy equipment, aerospace equipment, high-tech ships, and overseas engineering equipment are already at the worlds leading level. Engineering machinery, building materials equipment, and computer equipment are at the worlds advanced level. However, gaps still exist in areas such as industrial machine tools, agricultural machinery, aviation equipment, robots, instruments and meters, semiconductor equipment, and biomedical equipment.On May 30, local time, Canadian Prime Minister Mark Carney met with Wang Yi, member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, in Ottawa on May 29. Wang Yi conveyed greetings from Chinese leaders to Carney, stating that the Prime Ministers successful visit to China had corrected the course of China-Canada relations and put them back on track. The two leaders decision to build a new type of strategic partnership between China and Canada provides strategic guidance for the development of bilateral relations. Facts have proven that the turnaround in China-Canada relations is in the interests of both countries, meets the expectations of all parties, and is the right choice for Canada. There are no fundamental conflicts of interest between the two countries, and there is enormous room for cooperation. China is willing to work with Canada to respect each other, meet each other halfway, seek common ground while reserving differences, strengthen communication, and deepen cooperation to promote the healthy, stable, and sustainable development of bilateral relations. Both sides should uphold multilateralism, adhere to the rule of international law, and maintain strategic autonomy, supporting free trade and an open world economy, which will benefit the people of both countries and inject stability from China and Canada into a volatile world.

AUD/USD and JPY Are in Focus as APAC Trading Begins Amid Fed Bets and BOJ Scrutiny

Drake Hampton

Apr 25, 2022 10:30

Asia-Pacific Outlook for Monday

The risk-averse Last week, the Australian Dollar fell sharply against the US Dollar as markets adjusted to growing hawkish shifts in Fed rate hike bets. As a result of these shifts, short-term Treasury yields increased as traders sold government bonds. Overnight index swaps are pricing in a 'front-loading' of tightening, with 50 basis point hikes favored as the base case scenario for the next four FOMC meetings.

 

Apart from the Fed and rate hike bets, the market will be watching Australia's first-quarter inflation data due Wednesday. According to a Bloomberg survey, analysts expect the consumer price index (CPI) to rise to 4.6 percent year over year. This would be an increase from 3.6 percent year on year in Q4. A stronger-than-expected print may rekindle some bullish energy in the Australian Dollar, as bets on an RBA rate hike may strengthen in response to the strong price data. As of Friday, cash rate futures indicated a low probability of a rate hike at the RBA's May meeting.

 

The Japanese Yen will also be under focus this week, as the Bank of Japan is scheduled to release its April policy decision on Thursday. Rate traders do not anticipate a change in the benchmark rate, although they do anticipate an update to the bank's inflation targets. USD/JPY increased for a seventh straight week, owing to the BOJ's vigorous bond buying aimed at limiting rates. Last week, USD/JPY one-week risk reversals went into negative territory, indicating that options traders may be favoring some short-term Yen gains.

 

Elsewhere, the March trade balance for New Zealand will be released, which may cause some volatility in the New Zealand Dollar. NZD/USD declined last week as a result of the general risk-off sentiment that drove the majority of APAC currencies lower against the USD. This is despite the fact that bets for an RBNZ rate hike have firmed. The Kiwi Dollar's fall was almost certainly also a result of lower metal prices, which have been weighed down by both a stronger US Dollar and weakening demand as China's crackdown continues. 

Technical Analysis of the AUD/USD

The march bottom is clearly in focus after AUD/USD plunged this week, slicing through its 50-, 100-, and 200-day Simple Moving Averages (SMA). If prices fall below 0.7162, this might spark bearish sentiment sufficiently to push prices near the critical 0.7000 level. Recently, both the MACD and RSI oscillators produced bearish signals, with a cross below their respective center lines. 

AUD/USD Daily Chart

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