World news – AU – Dollar remains under pressure

The Reserve Bank of Australia lowered its key rate (the overnight cash rate and its three-year target yield) to 10 basis points and announced a $ 100 billion bond purchase effort.

The dollar’s decline against the Chinese yuan continued today, and a new low in two years was recorded near CNY 6. 55.

Overview: Moderna (NASDAQ: MRNA) announcement did not stimulate nearly the extent of the disruption caused by a similar Pfizer (NYSE: PFE) ad a week ago. However, in the US, the Nasdaq performed less than other indices, and the US Dow Jones Industrial Average was at record levels. US yields were strong, and the yield on 10 was up nearly 1 basis point compared to more than 10 basis points on Pfizer news.. The currencies of the dollar bloc and the Scandinavian countries led the broad movement against the dollar, while the pound sterling, the yen, the Swiss franc and the euro were little changed.. The MSCI Asia Pacific Index rose for the 12th session in a row today, despite lower markets in China and South Korea. Yesterday’s European Dow Jones Stoxx 600 strengthened roughly 1. 2% in advance. US stocks were mixed today, with Nasdaq futures trading slightly higher while the S&P 500 index slightly lower.. The 10-year US bond yield is much softer, just below zero. 90%, and European revenues are slightly lower as well. The dollar is softer against most of the major currencies, led by the Japanese yen and the British pound. Among the emerging market currencies, the currencies that can be accessed through liquidity are mostly low, led by the Turkish lira. Among the strongest emerging market currencies, the Chinese yuan is 0. The 5% gain is the largest. Gold is calm near $ 1,890, and silver is threatening to advance for five days. Oil hasn’t changed much, leaving West Texas Intermediate December contract consolidating above $ 41 a barrel in a narrow range..

Although there is little doubt that Biden will be the next president of the United States, the failure to imitate Trump is not only to refuse to accept the election results as legitimate, but to continue to take substantive political measures. And the United States last week announced sanctions against 31 Chinese companies with ties to the military. More sanctions are expected in the coming days, with a focus on forced labor, which is considered a human rights issue and an economic competition issue. This investment ban could be a blow stronger than tariffs. While China is deeply embedded in the flow of commodities, its integration into global capital markets is an early stage and arguably more vulnerable.. Savings flowing into emerging markets or inactive or subordinate global stocks are likely to have a stake in a company that has been or will be sanctioned, such as China Mobile (NYSE: CHL) or China Telecom (NYSE: CHA). Biden is being extradited a fait accompli. Even if he wanted to, he could simply not comfort them without sending disturbing signals to allies and adversaries. The ban on new ownership will take effect less than two weeks before the end of Trump’s term. The current owners will have until next November to liquidate. Will the criteria be modified for this? Investors?

The Reserve Bank of Australia lowered its key interest rate (its one-night cash rate and its three-year target yield) to 10 basis points and announced a A $ 100 billion bond purchase effort. The minutes of the meeting released today showed that the officials had considered targeting the five-year return, but decided to reject it, but nevertheless it reveals the possible next step.. Separately, Kent, Assistant Governor of Financial Markets, linked recent Australian dollar strength to vaccine news and voiced serious concern about the exchange rate, which he saw was close to fair value.. . Finally, six years of negotiations have finally produced a mutual security arrangement between Australia and Japan.. Timing is important because the regional free trade agreement over the weekend spurred talk of China’s growing dominance, as the economy will outpace security.. .

After rising to the top on Nov.9 in reaction to Pfizer’s announcement, the dollar gradually pared these gains. Today’s low is near JPY104. 25 is the lowest since then and approaches 61. 8%) rebound target (~ 104 JPY. 14). Japanese Yen 104. 00 is still expected to provide some support, and there is an option right above it (104 JPY. 03) Holds a $ 425M option that expires today. The dollar may be capped at 104 Japanese yen. 50 Japanese Yen 104. 60 regions. The Nikkei has risen in 10 of the past 11 sessions, and the yen’s recovery may lead to some consolidation in the near term. The Australian dollar is strong, and it could be the first session in two months that it settles above $ 0. 7300, although it may be challenged in North America today. It encountered resistance near last week’s high (~ $ 0. 7040). Break $ 0. The 7300 can test support at $ 0. 7270-0. District 7280. The dollar continued to decline against the Chinese yuan today, and hit a new two-year low near CNY 6. 55. The People’s Bank of China (PBOC) set the reference rate of the dollar at CNY 6. 5762 in line with expectations. The yuan is also trading at a two-year high against the CFETS basket..

The European Union must have believed that Hungary and Poland were bluffing. The EU budget framework for 2021-2027, which includes the much-publicized European Recovery Fund (and in which the so-called Hamilton moment), requires unanimous approval.. Both Budapest and Warsaw threatened to withhold their consent if others insisted on turning it into a club instead of collective aid.. The link between aid and respect for the rule of law was approved by a qualified majority, but the entire budget failed to receive approval. The EU minister will debate tomorrow and EU leaders on Thursday. Hungary and Poland are both subject to official investigations by the European Commission into judiciary and media independence.

The Sun broke the story claiming that British Prime Minister Johnson had been asked to prepare for a trade agreement with the European Union early next week.. The UK’s chief negotiator, Frost, seemed to realize earlier that since the UK is the applicant for the FTA, it is they who have to make last-minute concessions.. Nevertheless, the emerging optimism is coming from the UK, and it would be useful if EU negotiators like Barnier confirm the news.. There was always room on paper for an agreement to avoid a difficult (no deal) exit.. The stalemate in fisheries could extend for six months or a year. The United Kingdom concluded a trade deal with Japan that largely led to the extension of the existing treaty between Japan and the European Union to the United Kingdom. The parties have agreed that government aid to the troubled firms will be limited and require restructuring. The UK is now reluctant to recognize the same principle in negotiations with the European Union. Instead, the UK simply wants to require notification of subsidies rather than restricting them. This was based on previous trade agreements such as the European Union agreement with Canada.

The Euro held near its best (~ $ 1. 1880) since last Monday when it rose to $ 1. 1920. 2. A € 1 billion option is priced at $ 1. The 1850 that expires today is less important, but there is another option that expires for 1. 1 billion euros at a price of 1 dollar. 19 still standing. Fresh buying appeared in early European activity near $ 1. 1865. The escalation of the Covid virus in Europe may be under control gradually as social restrictions begin. For example, the average of seven days in France has decreased for more than a week. On the other hand, all 50 US states are experiencing higher seven-day averages. Notions that the US is a few weeks behind Europe are a consideration for the EUR bulls. The British Pound is now at its best since last Monday’s rally above $ 1. 33. It tests 1 dollar. 3250-1. Resistance zone 3265 in the European morning. Although reports on progress in trade talks between the United Kingdom and the European Union may have helped the pound, it was still a move for the dollar in the first place.. The euro became a bit heavier against the pound today and did not convincingly break yesterday’s low (~ £ 0. 8955) which is well above the second half of last week’s low near GBP0. 8900, where an option was struck by about 925 million euros which expires today.

The US today releases retail sales and industrial production numbers for October. These are the highlights of the week’s data. Retail sales account for about 40% of consumption, and if the economy slows from the annual pace of 33% in the third quarter to 3-4% as economists predict, consumption will slow sharply.. Investors will recognize this today. After the rise 1. 9% in September, retail sales are expected to rise by 0%. 5% last month. The core metric, which excludes cars, gasoline, and building materials, which is used in the GDP calculations, is also expected to have increased by 0. 5% after 1. 4% gain in September. Industrial production and manufacturing will likely recover from the decline in September. Industrial production is expected to increase by about 1%. 0% after dropping 0. 6% previously. Manufacturing is also expected to rise by 1. 0%. It decreased by 0. 3% in September. This may indicate that the US use of capacity has risen to about 72. 3%. It was closer to 77% a year ago. Finally, note that many Fed officials are speaking in the afternoon of the United States, including President Powell.

The Senate vote to confirm the Shelton Fed took a dramatic turn yesterday. Alexander of Tennessee becomes the third Republican senator to oppose the nomination (joins Romney and Collins). However, Alexander would not be in Washington to vote. Assuming all other Republican senators (except for Scott from Florida, who is under quarantine) attend and vote, it might be a tie that allows Vice President Pence to cast his crucial votes (47 Democrats and 2 Independents oppose). If a delay can be organized, then the Arizona special election winner, Kelly, the Democrat, would take his seat at the end of the month and that could be enough to stop him. However, a procedural vote is scheduled for today.

Canada reported housing starts in October, wholesale trade in September and international securities transactions. Existing Home Sales yesterday were softer (-0. 7%). These are not usually data points to move the market. Tomorrow’s CPI will be seen as more important despite the weak headline figure (0. 5% YoY In September, fundamental core measures remained flat (1. 5-1. 9%). Mexico declares unemployment in October. He’s been drifting downhill since he hit 5. 5% in June. In September, it was at 5. 1%. Last October, it was 3 o’clock. 65%.

The US dollar is trading in a narrow range of $ 1 CAD. 3065 and 1 Canadian dollar. 3090 so far today as it consolidates near yesterday’s lows. CAD1. The 3050 area is the midway point of last week’s recovery from Monday’s year-low near $ 1 CAD. 2930 to a high of last week near 1 Canadian dollar. 3175. Break 1 Canadian dollar. The 3020 area may indicate a return to last week’s lows. The dollar is also trading inside yesterday’s range against the Mexican peso (~ MXN20. 2425-20. 3655. Note that the dollar has risen against the peso in one week in each of the past three months, and since the end of July the peso has risen by 9. 4%, making it the second strongest country in the emerging world after the South African rand rose by nearly 11%.

US Dollar, Bonds