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U.S. stocks continued their decline, with the Nasdaq falling more than 1%, the S&P 500 down 0.65%, and the Dow Jones down 0.55%.On May 12, a senior U.S. Department of Defense official estimated the latest cost of the war with Iran at approximately $29 billion, an increase of about $4 billion from an estimate made less than two weeks earlier. Acting Comptroller General Jules Hearst told a House Appropriations Subcommittee on Tuesday that the total cost of the war is "close to $29 billion," due to the additional operational costs of maintaining U.S. military deployments in the Middle East and the costs of updating equipment repair and replacement. This figure is about 16% higher than his estimate of $25 billion when he testified before the House Armed Services Committee on April 29. Hearst also hinted that the cost figure may continue to change in the future.A spokesman for Iran’s Ministry of Defense warned that if its enemies do not accept Iran’s demands through diplomatic means, they should be prepared to “fail again” in any future confrontation.New York City Mayor Mamdani has cancelled the planned increase in New York City property taxes in the revised budget.On May 12th, Futures News reported that, according to foreign media, German analysis firm Oil World stated on Tuesday that EU canola production is projected to increase to 20.97 million tons in 2026/27 from 20.52 million tons in 2025/26, while imports will decrease to 6.5 million tons from 6.9 million tons this year. The firm forecasts Canadian canola production at 21.4 million tons in 2026, down from 21.8 million tons in 2025/26. Canadian canola exports are expected to decrease to 7.6 million tons in 2026/27 from 8.3 million tons this year. Global biodiesel production is projected to increase to 67.1 million tons from 61.3 million tons in 2025, with EU biodiesel production rising from 14.9 million tons to 15.3 million tons.

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

 截屏2022-11-28 上午10.39.08.png

 

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.