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On August 30th, Iranian Deputy Foreign Minister Gharibabadi stated on August 29th that Iran and Oman had reached an understanding on passage arrangements in the Strait of Hormuz, but this understanding would not automatically enter the implementation phase. Gharibabadi indicated that unless the United States fulfills its obligations, the understanding between Iran and Oman regarding the Strait of Hormuz will not enter the implementation phase, and Iran is in no hurry to reopen the Strait of Hormuz.August 30th - According to the Daily Telegraph, British Chancellor of the Exchequer Healy is considering a windfall profits tax on banks and oil companies in his first budget. Treasury officials are discussing the two policies as they try to find a way to fill a £4.7 billion shortfall in public finances while avoiding a direct increase in personal taxes. It is understood that Healy hopes next months budget will be low-key and ensure that the inevitable tax increase is far less than that implemented by his predecessor, Reeves.On August 30th, it was reported that on August 29th local time, Magnus Brenner, the European Commissioner for Home Affairs and Migration, stated that Spain had requested further support from organizations including the European Border and Coast Guard, Europol, and the European Asylum Service in response to the migration crisis. The EU is processing the request and will make a decision quickly. He emphasized that the current priority remains the swift repatriation of those illegally residing in the Spanish enclave of Ceuta. Ceuta experienced a large-scale smuggling incident at the end of July, and thousands of illegal immigrants remain stranded there. Spain requested EU assistance on August 28th to address the migration crisis.On August 30th, the U.S. Embassy in Beirut, Lebanon, issued a statement on Saturday stating, "When Hezbollah decides it is ready to do so, it can engage in dialogue with the Lebanese government. We are already in dialogue with the Lebanese government and can tell them that Hezbollah is ready to surrender its weapons. At that time, we can try to bring the positions of all parties closer together." The U.S. Embassy continued, "But for now, Hezbollah is unwilling to engage in dialogue with either the Lebanese government, or with us or Israel, because it is simply following orders from Iran."On August 30th, the National Park Service endorsed President Trumps proposed 250-foot-high triumphal arch, despite the agency finding that the project would negatively impact historic heritage and views around Washington, D.C. "The proposed arch continues historical tradition, introducing a visual focal point that reflects the intended character of the site and celebrates the 250th anniversary of American independence," the federal agency wrote in a report released Friday. However, the report also confirmed that dozens of historic sites, including the Lincoln Memorial, the Washington Monument, and other landmarks, would be negatively affected. The anticipated "adverse impacts" relate to changes in views and the skyline, rather than any physical damage to these historic buildings.

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.