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The final August services PMI figures for France, Germany, and the Eurozone will be released in ten minutes; Singapores fuel oil inventory figures for the week ending September 2, and the changes in LME copper, aluminum, and nickel inventories in the UK for the week ending September 3 will be released in twenty minutes.On September 3, Foreign Ministry Spokesperson Guo Jiakun held a regular press conference. A Reuters reporter asked, "The president of Palau, the host country of the 55th Pacific Islands Forum, said today that he hopes member states will reach a consensus to condemn Chinas missile test in the region. What is the Foreign Ministrys response to this?" Guo Jiakun stated that China has repeatedly clarified its position on the test. Palaus repeated hype is an attempt to manipulate the positions of other Pacific Islands Forum member states; its intentions are malicious, and its scheme will not succeed. Guo Jiakun said that China adheres to the path of peaceful development, firmly pursues a defensive national defense policy, and never engages in military expansion. We are willing to work with South Pacific countries to contribute to maintaining peace, stability, development, and prosperity in the South Pacific region.On September 3, Polish Deputy Defense Minister Pawel Zalewski stated that Poland hopes to expand its participation in NATOs nuclear deterrence system, and the issue of participating in related missions under the NATO nuclear sharing framework is currently under discussion. He said Poland hopes to participate in missions related to nuclear weapons delivery, which is also part of the NATO nuclear sharing mechanism. Through participation in related programs, Poland hopes to further strengthen its role in NATOs nuclear deterrence system. Zalewski stated that this is the first time Poland has pushed for NATO member states to consider allowing it to participate in related nuclear weapons delivery missions. However, he also emphasized that there is currently no issue of deploying nuclear warheads outside of existing NATO deployment sites.September 3 - U.S. retail diesel prices rose to their highest level since mid-2022, surpassing the peak set at the beginning of the Iran-Iraq War and just shy of a record high. Data from the American Automobile Association (AAA) showed that the national average retail price of diesel rose to $5.783 per gallon on Wednesday, exceeding the high reached in April during the Middle East war and only slightly below the record high set in June 2022 during the energy crisis triggered by the Russia-Ukraine conflict. Patrick DeHaan, director of oil analysis at GasBuddy, said that at the current rate of increase, diesel prices could break a new record before Labor Day next Monday.On September 3, the Ministry of Commerce held a regular press conference. Spokesperson Huang Ling, responding to comments made by EU Trade and Economic Security Commissioner Šefčovič regarding China-EU trade, emphasized that consultations at all levels between China and the EU should adhere to the stable and balanced positioning of the key China-EU trade partnership, and insist on resolving each others concerns on an equal footing. Unilateral demands, conditions, or even threats of market closures should be avoided. Huang Ling stressed that China has repeatedly reiterated that the EU should face up to its own economic and trade problems. China is not the root cause of these problems, but rather a partner that can help the EU resolve them.

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.