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U.S. Central Command: Over the past seven months, in addition to U.S. Navy warships, the Iranian Revolutionary Guard has continued to indiscriminately target thousands of civilian crew members passing through the regions waters.On October 15th, according to Tasnim News Agency, Iranian Parliament Speaker Ghalibaf stated: "Even if we negotiate with the United States, reach an agreement, and sign a document with commitments from the US, can we guarantee that the US will not attack Iran again? Undoubtedly, the answer is no. Simply relying on war and escalating tensions cannot force the enemy to abandon its threats and established objectives. The solution is to both fight and negotiate to establish a lasting deterrent. We must fight with all our might when necessary, transforming military victories into political victories, and securing the benefits, resources, and time needed to strengthen our power. We must replace the cycle of war, negotiation, and peace with a new model of war, negotiation, and deterrence. Before signing the memorandum of understanding, I said that the US would not fulfill its commitments, therefore we designed it in two phases. We first gained a strategic advantage through fighting, and then forced the US to accept the understanding. Our strategy of both fighting and negotiating does not mean endless war or perpetual negotiations, but rather using fighting to trap the enemy and force them to accept the legitimate demands of the Iranian people. Regarding the US proposal, the US president previously made commitments, but has now broken them." The United States must be punished, change its behavior, and fully recognize that it must accept the legitimate demands of the Iranian people.On October 15th, former Ukrainian Defense Minister Mykhailo Fedorov stated that Starlink is resuming connectivity services for devices traveling at speeds not exceeding 160 km/h, but completely removing the speed limit on Starshield is crucial for Ukraines defense, and he called on Elon Musk to continue providing support. Musk subsequently responded that the Starshield system is owned and controlled by the US government, and any speed or usage restrictions are decided by the US military, with the final decision resting with US President Trump. Musk also emphasized that Starlink is a commercial service owned and controlled by SpaceX, permitted only for civilian or defensive activities, and not for offensive military operations, as commercial companies involvement in such operations is inappropriate.Federal Reserves Goolsby: He doesnt like revealing the Feds intentions before meetings.According to Tasnim News Agency: Houthi rebels in Yemen attacked Saudi Aramcos oil distribution facilities in northern Jeddah, Saudi Arabia.

AUD/JPY Establishes over 90.00 as RBA Favors Gradual Balance Sheet Easing Program

Alina Haynes

May 23, 2022 10:06

The AUD/JPY pair has showed a sharper upward move after being underwhelming in the early Tokyo session. The risk barometer stayed in a modest range of 90.18-90.44 and now has surged significantly to around 90.60 after Reserve Bank of Australia (RBA)’s Christopher Kent said that the central bank is in no haste to kick-start its balance sheet reduction operation.

 

The current spike in the price pressure caused the RBA to boost its interest rate by 25 basis points (bps) for the very first time since the Covid-19 epidemic in May’s monetary policy statement. The action was absolutely unexpected since the RBA did emphasize in its comments that the central bank is not seeing rate rises sooner.

 

As RBA has pushed up its rate cycle, the market investors started expecting that the RBA will also commence its balance sheet reduction program to speed up the inflation-controlling procedure. Now, the RBA has indicated that the central bank is in no mood to bank upon quantitatively easing forcefully.

 

RBA Christopher Kent ordered that the Bank would continue to be able to maintain effective control over the cash rate as it withdraws monetary policy stimulus in the term ahead,' as per Reuters.

 

Meanwhile, higher-than-anticipated inflation data in Tokyo are expected to limit the sheer quantity of stimulus packages supplied by the Bank of Japan (BOJ) to accelerate the growth rate. Annual Japan’s National Consumer Price Index (CPI) number at 2.5 percent , much higher than the expectations of 1.5 percent and the earlier print of 1.2. 

AUD/JPY

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