Forexlive Asia-pacific FX news wrap 1 Dec: The USD is off to a bullish start for the week.

• Geopolitics: Not in stage of optimism, but have made progress toward deal with Hamas
• Netanyahu: Conditions are ready after the end of the war in the north, to deal wi. Gaza
• China’s Caixan S&P Global Manufacturing PMI 51.5 vs 50.3 in October
• PBOC sets USD/ CNY mid-point today at 7.1865 (vs. estimate at 7.2384)
• Japan manufacturing PMI for November 49.0 versus 49.0 previous
• Pres. Biden issues a pardon for Hunter Biden
• Australia company profits pretax Q3 1.6% versus -1.7% previously
• Australia business inventories for Q3 -0.9% versus -0.4% expected
• Australia retail sales for October 0.6% versus 0.4% estimate
• Australia building approvals for October 4.2% versus 1.5% estimate
• The Japan’s Nikkei 225 opens up 0.02% and 38,216.95
• Japanese capital expenditures for the Q3 2024 rises by 8.1% versus 7.4% last quarter
• Australian manufacturing PMI from November 49.4 versus 49.4 preliminary
• NZ Building Consents -5.2% vs 2.4% last month
• Trade ideas thread – Monday, 2 December, insightful charts, technical analysis, ideas
• Weekly Market Outlook (02-06 December)
• Trump weekend tweet roundup: ‘Productive’ meeting with Trudeau and a BRICS rant

Markets:

• Gold fell with the dollar up and geopolitic tension easing. Price is down -$23.13 or -0.87% at $2627.20
• US 2-year yield 4.194%, +2.0 basis points
• US 10-year yield 4.216%, +2.3 basis points
• WTI crude oil up $0.36 or 0.53% at $68.36
• Nikkei 225 +218 points or 0.57%
• Shanghai composite +32 points or 0.98% at 3358.98
• Hong Kongs Hang Seng +7.62 oints or 0.06%

The US dollar is trading higher versus all the major currency pairs. The dollar index is up 0.53% to start the new trading day/week:

• EUR, +0.55%
• JPY +0.66%
• GBP, +0.43%
• CHF +0.47%
• CAD +0.24%
• AUD +0.31%
• NZD +0.42%

The USD moved higher to start the new trading week with the USDJPY leading the way with a 0.66% gain.

Trump over the weekend criticized and threatened the BRIC countries who wanted to “move away from the USD” with 100% tariffs which may have led to some dollar buying just because.

As Adam posted this weekend, the threat is somewhat silly, but it may have been worth a move higher in the US dollar to start the trading week.

The USD also corrected lower last week despite the RBNZ cutting rates by 50 basis points and the general feeling that the going will be tougher for foreign countries with Trump breathing down their necks 24/7.

Technially:

• EURUSD fell from levels near 1.0600 last week and broke back below the 100 hour MA at 1.0533 and is testing the 200 hour MA at 1.0517. A move below each would increase the bearish bias and have traders looking toward 1.0483 to 1.0500 and below that, the 1.0448 level.
• USDPJY moved higher and back above the broken 38.2% of the move up from the September low at 150.18. That is now close support in going into the rest of the day with 151.27 the next upside target. The price is currently at 150.69.
• GBPUSD is back below its 38.2% of the November range at 1.2699 (call it 1.2700). THe current price is at 1.2687. Stay below 1.2700 is close risk for sellers on the failed runs higher from last Friday (above 1.27159
• USDCHF is testing its 200 hour MA at 0.88513 after breaking above the 100 hour MA and the 100 bar MA on the 4 hour chart near 0.8832. Stay above 100 bar MAs going forward keeps the buyer in control.

This article was written by Greg Michalowski at www.forexlive.com.