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According to the UAE news agency, Trump discussed cooperation between the UAE and the United States and ways to further strengthen relations in support of common interests.August 18th - Investors have reason to worry about inflation, but this may not be the primary reason for rising bond yields. In fact, inflation expectations, as measured by the breakeven rate, are quite close to the Federal Reserves long-term target of 2%. Capital.com analyst Daniela Hathaway stated, "Investors can be confident that inflation will average around 2%-2.5% in the long run, but this forecast is becoming less certain due to oil, tariffs, fiscal policy, and other supply shocks." She added that the bond sell-off is driven by "persistent inflation risks, massive government borrowing, and increasingly fierce competition for capital, rather than simply a sharp rise in expected inflation itself."International Atomic Energy Agency: No nuclear safety or security damage was reported following the drone explosion.On August 18, Qatari Foreign Ministry Spokesperson Majid Ansari stated that Qatars current diplomatic efforts are primarily focused on de-escalating the crisis and preventing further escalation. The solution lies in achieving a ceasefire between the US and Iran, opening the Strait of Hormuz and guaranteeing freedom of navigation, while simultaneously pushing the US and Iran back to the negotiating table. Ansari noted that Qatar and Pakistan previously mediated a memorandum of understanding between the US and Iran, and Qatar is working to restore dialogue between the two sides and implement the memorandum. However, due to the breach of the ceasefire, the relevant provisions have not been fully implemented. Currently, Qatar is awaiting an agreement between Oman and Iran on the Strait of Hormuz issue, hoping to use this to resume the negotiation process and prevent further escalation. Ansari also stated that the current priority is to reach an agreement that simultaneously ensures the opening of the Strait of Hormuz and a ceasefire. Qatar will continue to push all parties involved to return to negotiations to implement the previously reached memorandum of understanding or to reach an agreement to end the war.The International Atomic Energy Agency (IAEA) reported that the explosion injured or killed 16 employees and contractors, including one fatality and three serious injuries.

AUD/USD tests bearishness near 0.6350 as China's GDP and US PMIs show improvement

Alina Haynes

Oct 24, 2022 16:44

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After China released positive Gross Domestic Product (GDP) figures for the third quarter (Q3) early on Monday, AUD/USD bids perk up to pare intraday losses to 0.6365. However, negative sentiment, volatile markets, and pessimism surrounding Australia appear to provide challenges for Aussie pair buyers.

 

China's GDP for the third quarter grew by 3.9% compared to the market's prediction of 3.4%, while September's Industrial Output grew by 6.3% opposed to the market's forecast of 4.5%. In September, however, China's retail sales fell to 2.5% from 3.3% as predicted by the market.

 

In addition to hawkish Fed bets and geopolitical concerns about China, it should be noted that recent AUD/USD pricing has been affected by expectations that the Australian government may decrease growth projections in the forthcoming budget update.

 

According to new forecasts to be published by Treasurer Jim Chalmers in Tuesday's budget, Reuters stated that Australia's economic growth will decline significantly in the coming fiscal year as rising inflation reduces family expenditures. ABC News reported elsewhere that Ukrainian General Oleksandr Syrskiy expressed nuclear war concerns. Concerns that Chinese President Xi Jinping will escalate geopolitical tensions with the United States over Taiwan have also weighed on the AUD/USD exchange rate.

 

Despite this, S&P 500 Futures post intraday gains of 0.50 percent, while 10-year US Treasury rates remain at 4.19 percent, extending Friday's falls from the 14-year high.

 

The S&P Global Manufacturing PMI for Australia declined to 52.8 from 53.5 in September and 52.5 as projected by the market, while the Services PMI decreased to 49 from 50.6, and 50.5 correspondingly. This resulted in the S&P Global Composite PMI sliding into contraction territory with a value of 49.6 compared to 50.9 previously.

 

Christopher Kent, Assistant Governor (Economic) of the Reserve Bank of Australia (RBA), emphasizes that the RBA board anticipates further interest rate increases in the near future. The policymaker also highlighted, according to Reuters, that the magnitude and timing of rate hikes will depend on incoming data.

 

Future AUD/USD traders will pay close attention to risk catalysts as well as the preliminary US PMI figures for October. In spite of this, AUD/USD bears are likely to retain control given the recent surge in hawkish Fed bets and geopolitical fears.

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