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February 23 – The 9th Congress of the Workers Party of Korea continued on February 22. The meeting discussed and revised the Workers Party Constitution and elected members of the Central Leadership. The Congress expressed its full support for and endorsement of the proposal to re-elect Kim Jong Un to the highest position in the Workers Party of Korea, and elected him as General Secretary of the Workers Party of Korea. The meeting also elected members and alternate members of the Central Committee of the Workers Party of Korea. Kim Jong Un, Pak Thae Song, Jo Yong Won, Ri Il Hwan, and 139 others were elected as members of the Central Committee of the Workers Party of Korea.February 23 - Analysts say that as skepticism surrounding artificial intelligence grows, Wall Street is increasingly worried that the chip giants earnings this week will drag down its stock price. Nvidias stock has been trading sideways for months, rising only 1.7% since the beginning of the fourth quarter of last year, slightly below the S&P 500s 3.3% gain over the same period. Nvidias recent lackluster performance is largely due to increased investor concerns about spending hundreds of billions of dollars on AI development, leading to capital outflows from large-cap tech stocks. However, the stock market also faces numerous external risks, including geopolitical instability and reduced expectations of interest rate cuts. All of this puts Nvidia in a delicate position when it releases its fourth-quarter and fiscal year results on Wednesday. Investors expect its results to far exceed Wall Street expectations and raise forecasts for the coming quarters. But the company may have little to do or say to drive a meaningful rise in its stock price. Nvidias stock price has fallen after its last two earnings releases.February 23 - On February 22, local time, Greenlands Prime Minister Jens-Frederic Nielsen stated on social media that Greenland has no intention of accepting a hospital ship that US President Trump planned to send to the island. Nielsen posted on Facebook that day, "The answer here is: No, thank you." He stated that Greenlanders enjoy free healthcare, a system that is a "basic component" of local society, "unlike the United States, where you have to pay for medical care."February 23 – The Iranian Foreign Ministry stated that its foreign minister and Iraqi foreign minister held a telephone conversation on Sunday evening. During the call, they reviewed and discussed the latest regional and international situation. The Iranian foreign minister briefed Iraq on the progress of the Iran-US nuclear negotiations. The Iraqi foreign minister emphasized Iraqs support for the ongoing diplomatic process and expressed hope that the ongoing talks would yield favorable results for Iran and bring peace and stability to the region.On February 23, local time, European Parliament International Trade Committee Chairman Alain Lange announced via social media that he would propose a suspension of the European Parliaments ratification of the EU-US trade agreement due to the "chaos" caused by the US Supreme Courts ruling that the US governments massive tariff policies were illegal. Lange stated that clear stipulations and legal certainty are needed before any further measures can be taken, and he will formally propose on the 23rd that the European Parliament temporarily freeze the ratification process of the trade agreement with the US until a proper legal assessment and clear commitment from the US are obtained. The EU-US trade agreement was reached last July, with the US imposing a 15% tariff on EU goods imported into the US.

AUD/USD continues to swing near 0.6860 despite positive Australian employment data

Alina Haynes

Dec 15, 2022 11:35

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The AUD/USD currency pair continues to be affected by the Federal Reserve's monetary policy decision (Fed). The Australian dollar has continued to bounce at 0.6860 despite the Australian Bureau of Statistics' announcement of a significant improvement in Employment Change data. The Australian economy has created 64K new jobs, as opposed to the 19K expected and the 32.2K seen earlier. The unemployment rate has remained unchanged at 3.4%.

 

Previously, 12-month inflation forecasts for Australian consumers declined to 5.2% from 5.7% and 6.0% in the prior edition. Reserve Bank of Australia will be delighted by a considerable decline in inflationary pressures (RBA). Philip Lowe, the RBA's governor, has been tightening monetary policy to reduce the CPI (CPI).

 

Notably, a drop in one-year inflation expectations will not compel the RBA to abandon further interest rate hikes, given that the route to achieving a 2% inflation rate is not yet complete. The Reserve Bank of Australia (RBA) could boost the Official Cash Rate (OCR) by 25 basis points (bps).

 

A change in the Federal Reserve's (Fed) current monetary policy plan caused volatility in the US Dollar. After the Fed announced a lesser rate hike of 50 basis points (bps) and abandoned the 75 basis point rate hike cycle, the US Dollar Index (DXY) plummeted to a six-month low of 103.49. As the fight against inflation will take some time, the Federal Reserve has raised the peak interest rate to 5.1% by the end of CY2023.