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On August 30, the China Coast Guard conducted law enforcement patrols in the territorial waters and surrounding areas of Huangyan Island. Since August, the China Coast Guard has continuously strengthened law enforcement patrols in the territorial waters and surrounding areas of Huangyan Island, dealt with illegal and infringing vessels in accordance with laws and regulations, further strengthened the control of relevant sea areas, and resolutely safeguarded national territorial sovereignty and maritime rights and interests.On August 30, President Xi Jinping departed Beijing by special plane for Bishkek to attend the 2026 Shanghai Cooperation Organisation Summit and pay state visits to Kyrgyzstan and Egypt at the invitation of Kyrgyz President Sadyr Japarov and Egyptian President Abdel Fattah al-Sisi. Accompanying President Xi were his wife Peng Liyuan, Cai Qi (Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Director of the General Office of the CPC Central Committee), and Wang Yi (Member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs).U.S. National Hurricane Center: Lowell has strengthened slightly.On August 30th, economists predicted that the U.S. Bureau of Labor Statistics monthly jobs report, to be released Friday, would show a 55,000 increase in nonfarm payrolls in August, following an unexpected decline in July. If this is the case, the result would be roughly in line with the average monthly increase this year. The unemployment rate is expected to remain at 4.1%. Analyst Anna Wong stated that Warshs hawkish speech in Jackson Hole increased the likelihood of a September rate hike and changed market expectations regarding how to interpret next weeks data. The August nonfarm payroll report remains headline data, but the expected weak performance may not be as decisive as usual. Warsh described the labor market as healthy and pointed out that slowing job growth is often a demographic issue rather than a recession.August 30th - According to the Wall Street Journal, President Trump spent months touting his move to overthrow Venezuelas leader as bringing the countrys oil "under American control." However, when U.S. energy companies were unwilling to invest at the pace and scale he desired, his administration devised an extraordinary solution to realize his vision—the U.S. government becoming the investor itself. The oil deal with Venezuela announced Friday evening will transform the U.S. governments role from "middleman" in U.S.-funded oil investment in Venezuela to "investor" itself. The agreement will grant Washington a direct financial interest in a private company that will be granted a century-long right to exploit some of the worlds largest proven oil reserves. Led by the controversial Venezuelan businessman Alejandro Bertancott, the company will have the opportunity to develop 17 oil fields estimated to contain 65 billion barrels of crude oil, equivalent to one-fifth of the countrys reserves. According to sources involved in the negotiations, the U.S. plans to hold a 35% passive stake in Bertancotts North American Blue Energy Partnership and have the right of first refusal to purchase 20% of its production at cost.

AUD/USD falls below 0.7070 despite a positive Services PMI from Caixin

Alina Haynes

Feb 03, 2023 15:29

Despite the release of good Caixin Manufacturing PMI (January) data from IHS Markit, the AUD/USD pair has established a new daily low at 0.7064. The economic data came in at 52.9, which is significantly higher than the consensus estimate of 47.3 and the prior report of 48.0. China's Services PMI has stayed upbeat despite the Lunar New Year celebrations in the last week of January.

 

Notable are the facts that Australia is China's largest trading partner and the Australian Dollar is its currency.

 

The Australian Dollar is likely to be influenced by the Reserve Bank of Australia's (RBA) anticipated interest rate announcement on Tuesday. In view of the unexpected rise in the Australian Consumer Price Index (CPI) to 7.8% in the fourth quarter of CY2022, RBA Governor Philip Lowe may maintain his aggressive stance regarding interest rates.

 

Deutsche Bank Australia analysts believe that the RBA will likely hike the Official Cash Rate (OCR) to 4.1%, citing the most recent inflation update, which revealed a slightly higher-than-anticipated 7.8% increase in the CPI. Forbes Advisor states, "While the RBA will likely move more slowly in 2023 than it did in 2022, we now anticipate four additional 25 basis point hikes in 2019: 25 basis points in February and March, and 25 basis points at the May and August meetings."

 

In the meanwhile, investors have been risk-averse due to rising anxiety preceding the United States' Nonfarm Payrolls (NFP) data release. Futures on the S&P500 and other perceived-risk assets are under heavy pressure. The US Dollar Index (DXY) has rebounded to approximately 101.50 after a corrective move and is expected to remain under the hands of bulls moving forward. In anticipation that the Federal Reserve (Fed) may suspend its policy tightening, 10-year US Treasury yields have fallen to approximately 3.38 percent.