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June 10 – The Democratic Republic of Congo (DRC) Ministry of Health reported on June 9 that as of June 8, the total number of confirmed Ebola cases in the DRC had risen to 598, with 115 deaths. The report indicated that 297 patients are currently in isolation or hospitalized, and the total number of recovered patients has risen to 22. The report stated that the number of confirmed cases is increasing weekly, community transmission continues, and the outbreak could suddenly expand geographically if public health measures are not implemented swiftly. The Africa Centres for Disease Control and Prevention (Africa CDC) announced on June 9 on its social media platform X that it has issued interim guidelines to African Union member states to strengthen Ebola surveillance and cross-border control efforts. The agency stated that due to frequent population movement, close trade relations, and weak border controls, the risk of the outbreak spreading to neighboring countries remains high.June 10th - Oil-themed LOFs (Listed Open-Ended Funds) fluctuated higher, with crude oil LOFs such as E Fund, Harvest Crude Oil LOF, and Southern Crude Oil LOF all rising by over 4%. Other oil LOFs and oil fund LOFs followed suit. The U.S. Central Command stated that it completed a defensive strike against Iran on June 9th in response to the downing of a U.S. Army Apache helicopter the previous day. The Iranian Armed Forces Hatem Anbia Central Headquarters subsequently stated that it had carried out a "fierce strike" against U.S. military bases in the Middle East.June 10th - Chinas PPI rose 0.5% month-on-month in May, a decrease of 1.2 percentage points from the previous month. The main characteristics of this months PPI performance are: First, industrial restructuring and upgrading led to price increases in some sectors. Continued progress in equipment upgrades in the manufacturing sector resulted in a 1.2% month-on-month increase in prices for ferrous metal smelting and rolling. Accelerated electrification, deep integration of artificial intelligence with various fields, and increased demand for computing power also drove up prices in non-ferrous metals, electrical machinery, and computer-related industries. Non-ferrous metal smelting and rolling prices rose 1.1%, with tin smelting and copper smelting prices rising by 4.8% and 3.1% respectively. Computer, communication, and other electronic equipment manufacturing prices rose 0.6%, with integrated circuit packaging and testing series and external storage equipment and components prices rising by 2.9% and 1.9% respectively. Electrical machinery and equipment manufacturing prices rose 0.5%, with optical fiber manufacturing and wire and cable manufacturing prices rising by 8.0% and 1.2% respectively. Second, increased seasonal demand led to price increases in some sectors. Third, fluctuations in international crude oil prices affected domestic related industries, causing prices to shift from rising to falling or a slowdown in the rate of increase.The media affairs advisor to the King of Bahrain stated that Bahrains air defense system successfully repelled the Iranian attack.On June 10th, Dong Lijuan, Chief Statistician of the Urban Division of the National Bureau of Statistics, interpreted the CPI and PPI data for May 2026. On a month-on-month basis, the national CPI decreased by 0.1%, compared to an increase of 0.3% in the previous month, mainly due to changes in energy and service prices. Affected by the transmission of international oil prices, domestic gasoline prices changed from a 12.6% increase in the previous month to a 0.3% decrease, leading to a change in energy prices from a 5.7% increase in the previous month to a 0.1% decrease. The impact on the CPI month-on-month shifted from an upward adjustment of 0.39 percentage points to a downward adjustment of 0.01 percentage points. Affected by the seasonal decline in travel after the May Day holiday, service prices changed from a 0.5% increase in the previous month to a 0.1% decrease, changing the impact on the CPI month-on-month shift from an upward adjustment of 0.22 percentage points to a downward adjustment of 0.03 percentage points. Among them, transportation rental and airfare prices changed from increases of 8.6% and 29.2% in the previous month to decreases of 6.8% and 6.3% respectively, contributing a combined decrease of approximately 0.04 percentage points to the CPI month-on-month. Summer clothing sales drove up apparel prices by 0.6%, while strong demand for AI-related products led to price increases of 1.6% for mobile phones and 1.1% for tablets. These three factors combined contributed approximately 0.05 percentage points to the month-on-month increase in CPI.

NZD/USD finds support near 0.6220; a decline appears more probable due to China's Covid concerns

Alina Haynes

Nov 28, 2022 15:04

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China's anti-Covid shutdown protests have weakened commodity-linked currencies, resulting in a gap-down start of roughly 0.6220 for the NZD/USD pair. During the previous week, the New Zealand dollar dropped after failing to surpass the round-level barrier of 0.6300.

 

Individuals have taken to the streets in China to demonstrate their opposition against the zero-tolerance policy, leading to a rise in civil unrest. Due to Chinese leader Xi Jinping's conservative posture and authoritarian framework, global markets have become more risk-averse. This has created an economic expansion risk and may worsen the already shaky housing market. Increasing apprehensions about societal risks may also result in political instability, which may have long-lasting detrimental effects on economic structure.

 

Notably, New Zealand is one of China's most important trading partners, and instability in China could damage the New Zealand Dollar.

 

In the meantime, the US Dollar Index (DXY) is profiting from investors' liquidity as the demand for safe-haven assets surges. The USD Index is hovering around 106.20 and attempting to reduce volatility as China's anti-locking protests restrict the upside and predictions of a slowdown in the Federal Reserve's larger rate hike cycle limit the downside (Fed).

 

S&P500 futures are under heavy pressure from market players due to a risk-averse market mentality. In anticipation of Fed chief Jerome Powell's address on Wednesday, yields on 10-year US Treasuries have decreased to approximately 3.68 percent. The Fed Chair's speech could dispel suspicions about a pause to the Fed's current rate-hiking program.