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On January 31, Russian Deputy Foreign Minister Grushko stated that the best guarantee for Ukraines security is a concrete guarantee of Russias security, a guarantee that no one in the West has offered. He emphasized, "If we believe that Ukrainian territory will not be used as a bridgehead threatening Russias security, then Ukraines security will also be guaranteed." The Russian Foreign Ministry previously stated that any scenario involving NATO member states deploying troops in Ukraine is absolutely unacceptable to Russia and could lead to a sharp escalation of the situation. The Russian Foreign Ministry also stated that statements from Britain and other European countries regarding the possible deployment of NATO troops in Ukraine are incitement to continue the conflict.January 31st - According to Yahoo Finance, Kevin Warsh, President Trumps nominee for Federal Reserve Chairman, appeared in newly released Epstein case documents released by the US government on Friday. The documents show that Warshs name was listed in the email guest list for the "2010 St. Barths Christmas" event, alongside figures such as Russian oligarch Roman Abramovich; he also attended a dinner hosted by British aristocrat William Astor. This revelation occurred on the same day Warsh was nominated for Fed chairman. His main controversy previously stemmed from his relationship with Republican donor Ronald Lauder, who was accused of influencing Trumps interest in Greenland during his first term and holding business interests there. Warsh may now need to address his relationship with Epstein and his 2010 Christmas trip, and there is also speculation that Trumps nomination is related to their shared social circle.January 31 – With the House of Representatives in recess and unable to consider the appropriations bill, the U.S. federal government entered a technical, partial shutdown at midnight local time on January 31. Analysts point out that although the shutdown is expected to be short-lived, it once again highlights the structural predicament of U.S. fiscal politics. In recent years, temporary funding, short-term extensions, and marginal shutdowns have become the norm in congressional budget battles, with government operations frequently hampered by political disagreements. Currently, the market generally believes that the direct impact of this technical shutdown on financial markets and economic operations is limited, but if subsequent congressional negotiations are again stalled, the risk of a prolonged shutdown and a wider impact cannot be ruled out.January 31st - The US government officially began a partial shutdown early this morning local time. This followed the Senates passage of a spending bill to fund most federal government departments, which was then submitted to the House of Representatives for consideration. However, because House members were not in Washington and would not return until Monday (February 2nd), the Senate vote could not prevent a partial government shutdown.January 31st - According to the UKs Daily Telegraph, British Prime Minister Keir Starmer responded to US President Trumps remarks on Sino-British cooperation in Shanghai on the 30th, stating that ignoring China would be "unwise." "It would be unwise to simply say we should ignore it. You know, French President Macron has already visited (China) and had exchanges, and German Chancellor Merz is also coming to exchange views," Starmer said. "It would not be in our national interest for Britain to be the only country refusing to engage (with China)." Starmer added, "In the past 24 hours, the opening of market access has been warmly welcomed by the business community. They have reported a change in the atmosphere and a significant increase in willingness to cooperate. This is good for our economy."

With RBA policy in the forefront, AUD/NZD sustains a weekly low at 1.0900

Daniel Rogers

Aug 01, 2022 12:16

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After dropping near to a crucial support level of 1.0900 during the Asian trading session, the AUD/NZD pair has since recovered considerably. Several offers have been submitted for the asset, and a purchase response is in the process. Strong purchase activity typically indicates that consumers thought the underlying product was a wise investment.

 

The cross is turning upwards as investors prepare for forceful words from the Reserve Bank of Australia (RBA). For the third time in a row, RBA Governor Philip Lowe is expected to increase the Official Cash Rate (OCR) by 50 basis points (bps). Australia's inflation rate has increased to 6,1% as of the second quarter of CY2022, which has led to increased pricing pressure. Since the prices of commodities like oil and food continue to fluctuate, the inflation rate has not yet run out of room to rise.

 

In today's session, the release of the Caixin Manufacturing PMI data is quite important. The economic data is predicted to register at 51.5, slightly below the prior level of 51.7. A reduction in Chinese industrial activities will have an impact on the antarctic because Australia is China's main trading partner.

 

On the New Zealand front, kiwi bulls anticipate the release of employment numbers on Tuesday. According to projections, the jobless rate will drop from the previously reported 3.2 percent to 3.1 percent. In addition, the Employment Change may increase from the previous 0.1 percent to 0.4 percent.