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According to Futures News on December 19, the holdings of the worlds largest gold ETF, SPDR Gold Trust, remained unchanged at 1,052.54 tons from the previous trading day.Japans core CPI rose 3% year-on-year in November, in line with expectations and unchanged from the previous month.On December 19, UN Deputy Spokesperson Haq stated that the Houthi rebels in Yemen had detained 10 UN staff members in the capital Sanaa, bringing the total number of UN staff members detained by the group to 69.Japans November core CPI annual rate will be released in ten minutes.1. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 0.14% to 47,951.85 points, the S&P 500 rose 0.79% to 6,774.76 points, and the Nasdaq Composite rose 1.38% to 23,006.36 points. Amazon rose more than 2%, and Nvidia rose nearly 2%, leading the Dow Jones. The Wind U.S. Tech Big Seven Index rose 1.69%, Tesla rose more than 3%, and Facebook rose more than 2%. Most Chinese concept stocks rose, with BOSS Zhipin rising more than 5% and XPeng Motors rising nearly 3%. Micron Technologys strong earnings report boosted market confidence and helped major stock indexes rebound after consecutive declines. 2. European stock markets closed higher across the board. The German DAX rose 0.85% to 24,164.71 points, the French CAC40 rose 0.8% to 8,150.64 points, and the UK FTSE 100 rose 0.65% to 9,837.77 points. The European Central Bank kept interest rates unchanged, Germany shifted towards a more accommodative fiscal policy, and moderate inflation expectations improved market risk appetite. 3. US Treasury yields fell across the board. The 2-year Treasury yield fell 2.08 basis points to 3.460%, the 3-year yield fell 2.78 basis points to 3.497%, the 5-year yield fell 3.84 basis points to 3.662%, the 10-year yield fell 3.31 basis points to 4.120%, and the 30-year yield fell 2.43 basis points to 4.802%. 4. International precious metals futures generally closed lower. COMEX gold futures fell 0.23% to $4363.9 per ounce, and COMEX silver futures fell 2.17% to $65.45 per ounce. US President Trump is expected to sign a defense bill and consider a housing emergency. Federal Reserve officials hinted at a possible interest rate cut, while the European Central Bank kept interest rates unchanged. 5. International oil prices rose slightly on the 18th, closing at $55.9 per barrel; Brent crude oil futures rose 0.12% to $59.75 per barrel.

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.