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On March 28, the Yemeni government issued a statement condemning Iran for dragging Yemen into the regional conflict through its supported armed forces. The statement pointed out that Iran, with the help of the Houthi rebels and other forces, is interfering in regional affairs, undermining national sovereignty, and threatening regional security. The Yemeni government believes that the Houthi actions serve Irans regional strategy. The statement warned that such actions will exacerbate Yemens humanitarian crisis and impact food and energy supplies. The government emphasized that the right to decide on war and peace belongs to the state, and any illegal military action must bear the consequences. The Yemeni government called on the people to refuse mobilization for war and urged the international community to increase pressure on the Houthi rebels and support the restoration of national power, stability, and development. Iran has not yet responded to this statement.On March 28, the Iranian Islamic Revolutionary Guard Corps (IRGC) issued a statement saying that, as part of Operation Honest Commitment 4, the IRGC Navy and Space Force conducted strikes against multiple heavy industrial targets in the United States and Israel using missiles and drones in the 85th wave of attacks. The statement indicated that this operation was in retaliation for previous attacks by US and Israeli forces against Iranian civilian industrial facilities. During the operation, Iranian armed forces launched saturation attacks on heavy industrial centers in Israel and other regions, destroying some targets. The IRGC emphasized that if the US and Israel continue to attack Iranian industrial systems, the scale of Irans subsequent retaliation will "exceed their expectations." In addition, during the interception and counterattack operations, Iranian air defense systems shot down a US-made MQ-9 drone over Shiraz. A US F-16 fighter jet was hit in southern Fars province and subsequently crashed while en route to an emergency landing at a base in Saudi Arabia.March 28 (Wall Street Journal) – Energy analysts warn that the oil market could face even greater turmoil if the Houthi rebels in Yemen resume attacks on Red Sea shipping. A renewed attack could cut significant amounts of oil from global supply and drive up prices. Saudi Arabia has been diverting as much crude oil as possible from the Persian Gulf to its Red Sea port of Yanbu, from where cargoes are primarily destined for Asia. While this hasnt fully offset the amount of oil unable to pass through the Strait of Hormuz, it has helped limit the rise in global oil prices. Analysts say that if Houthi attacks make it too dangerous for tankers to approach Yanbu, millions of barrels of crude oil could be stranded daily in the Middle East. In that case, Saudi Arabia might be forced to cut production along with Kuwait and Iraq.On March 28, the Fajar Military District of Fars Province, part of the Iranian Islamic Revolutionary Guard Corps, issued a statement saying that Iranian security forces discovered and destroyed 122 cluster bombs dropped by US and Israeli warplanes in the suburbs and surrounding areas of Shiraz, the provincial capital. The statement indicated that these cluster bombs were dropped several days earlier in areas including the village of Kafri in Shiraz, causing civilian casualties. The munitions were identified as BLU-108 submunitions carried by US-made CBU-105 cluster bombs. The statement concluded that the US and Israeli forces use of such weapons against civilian areas is further irrefutable evidence of their war crimes.Sources say Saudi Arabias crude oil exports have reached approximately 5 million barrels per day, and its petroleum product exports have reached 700,000 to 900,000 barrels per day. The Saudi East-West oil pipeline has a transport capacity of 7 million barrels per day.

Analysis of the NZD/USD Price indicates a continuation of gains towards 0.65

Daniel Rogers

Jan 18, 2023 15:02

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The NZD/USD pair is oscillating within a narrow range near 0.6430 in the early Asian session. Despite the market's risk aversion, the New Zealand dollar has traded sideways after reclaiming the monthly high of 0.6437. In reaction to Tom Barkin's hawkish comments about the Richmond Federal Reserve (Fed) Bank, S&P500 futures are exhibiting greater losses, indicating investors' diminishing appetite for risk.

 

Following a V-shaped recovery, the US Dollar Index (DXY) has turned sideways at 102,000 and is expected to extend gains on a risk aversion theme. In addition, higher 10-year US Treasury yields would certainly provide safe-haven investments a new lease of life.

 

After one hour of consolidation, the NZD/USD pair has broken out of the Bullish Pennant chart pattern, indicating that the rising trend will continue. Participants typically initiate long positions during the consolidation period of a chart pattern, preferring to enter an auction once a bullish bias has been established.

 

Adding to the upward filters, the 20-period and 50-period Exponential Moving Averages (EMAs) have resumed their upward trend at 0.6415 and 0.6401, respectively.

 

Meanwhile, the Relative Strength Index (14) continues to struggle to enter the positive zone between 60.00 and 80.00. The occurrence of a similar event will produce bullish momentum.

 

For greater gains, the Kiwi asset must beat Tuesday's high of 0.6439, which will rocket it to December 15's high of 0.6470, then December 13's high of 0.6514.

 

Alternately, a breach below Monday's low of 0.6361 will weaken the New Zealand Dollar and push the Kiwi asset towards January 12's low of 0.6304. A breach below this level will expose the asset to more losses approaching the low of 0.6263 on December 28.