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Multiple explosions were heard in Kyiv, the capital of Ukraine.On January 20th, a research report from CITIC Securities stated that looking ahead to 2026, the development of computing power is highly certain, supernode technology is poised for a turning point, major companies Capex verification of demand logic, and the increasing competitiveness of domestic computing power manufacturers further strengthens the investment opportunities in domestic computing power chips and domestic system-level manufacturers. Against the backdrop of rapidly improving model capabilities, AI applications are flourishing, and it is recommended to focus on AI applications represented by office, coding, agent, and multimodal applications. Furthermore, with overseas expansion and policy support for domestic demand, AI applications are expected to reach a turning point.The company stated on its interactive platform that it has not yet engaged in any commercial spaceflight-related businesses.On January 20th, a research report from CICC pointed out that the recent accelerated appreciation of the RMB exchange rate is likely due to a seasonal increase in foreign exchange settlement demand in December. Increased corporate funding needs at the end of the year lead to a strong seasonality in foreign exchange settlement, typically accelerating in December and January. On average, from 2013 to 2024, the RMB/USD central parity rate is projected to appreciate by 0.5% and 0.8% in December and January respectively, with probabilities of appreciation of 75% and 67%. Beyond a trade perspective, we believe that assessing exchange rates should also consider the financial cycle perspective.1. US media: Dark Side of the Moons valuation rises to $4.8 billion. 2. US media: OpenAI plans to launch its first hardware device in 2026. 3. MiniMax CEO Yan Junjie attends Premiers symposium, becoming the second AI large-scale model company representative to participate. 4. Musk: AI5s dual-chip collaboration is equivalent to Nvidias Blackwell level. 5. Reports indicate TSMC will invest in building four more advanced packaging facilities in Taiwan this year. 6. Reports indicate SK Hynix completes process upgrade at its DRAM memory wafer fab in Wuxi, Jiangsu, China. 7. Shenzhou-20 spacecraft return capsule successfully lands at Dongfeng Landing Site. 8. New national standards for civilian drones, clarifying registration and activation procedures, are released. 9. Counterpoint: Apples iPhone shipments in China grew by 28% during the holiday season, regaining its number one market position.

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.