ForexLive Asia-Pacific FX news wrap: USD ticks a little higher

• Oil ICYMI – Saudi Aramco reduced January 2025 pricing for Arab Light crude oil for Asia
• Reserve Bank of Australia meeting on Tuesday, December 10, 2024 – Statement/Bullock focus
• Bank of England Deputy Governor Dave Ramsden is speaking on Monday
• New Zealand PM Luxon says committed to continuing efforts to lower inflation and rates
• South Korea’s benchmark equity index has fallen to its lowest since late April 2020
• Goldman Sachs’ inflation projections for China are significantly lower than the consensus
• China’s Inflation Data: November Trends and Projections
• China’s annual central economic work conference is set to convene this week
• China November CPI +0.2% y/y (expected +0.5%) PPI -2.5% y/y (expected -2.8%)
• PBOC sets USD/ CNY reference rate for today at 7.1870 (vs. estimate at 7.2627)
• Fitch has slashed its 2025 and 2026 China economic growth forecasts
• HSBC forecast S&P 500 to 6700 – citing earnings growth
• M 6.4 US earthquake
• Demand for UK workers drops significantly after government’s budget
• Japan Q3 Revised GDP +0.3% q/q (prelim was +0.2%)
• South Korea to announce measures to improve FX liquidity by end of year
• ICYMI – Japan’s main opposition leader calls for gradual BOJ rate hikes
• New York Times reports that Israeli ground forces have crossed into Syria’s territory
• 60% of FX price changes occurred within the first minute of an economic release
• South Korean Finance Minister vows bold and swift measures to address financial mkt swings
• Reports that Amazon shareholders propose adding Bitcoin to balance sheet
• Trump’s stance on Fed Chair Powell revealed in weekend interview
• Update on Syria regime change: reports Assad and family fled to, given asylum in, Moscow
• Trade ideas thread – Monday, 9 December, insightful charts, technical analysis, ideas
• Monday morning open levels – indicative forex prices – 09 December 2024

Weekend:

• Weekly Market Outlook (09-13 December)
• Great weekend news for gold bulls as China’s central bank resumes buying
• Newsquawk Week Ahead: Highlights include: US and China inflation, ECB, RBA, BoC, SNB

The
US dollar added a few points during the session but ranges across
major FX were not large. NZD/USD was encouraged a little lower but
New Zealand Prime Minister Luxon saying he is committed to further
efforts to lower inflation and interest rates.

Over
the weekend we had some significant geopolitical news, with a regime
change in Syria (Assad and his family have fled to asylum in Russia)
and continuing unrest in South Korea over the short-lived coup
attempt. South Korea’s financial authorities have pledged to
support the won and the country’s financial markets. The benchmark
KOSPI equity index fell to its lowest since late April 2020 during
the session here today.

The
data agenda kicked off with revised Q3 GDP from Japan, with economic
growth revised a little higher. This will be welcome news for
Japanese authorities and boosts the chance, at the margin, of a Bank
of Japan rate hike this month (the meeting is December 18 and 19).

From
China we had inflation data for November:

• consumer
  prices rose at a slower pace in November, at their slowest
  in 5 months
• producer
  price deflation persisted, for its 26th
  month in a row
• the
  producer price index was -2.5% y/y, slowing from the -2.9% in October
  and above the estimated of -2.8%

Domestic
demand in China continues to languish despite government and PBoC
stimulus measures to support the economy.

Over
the weekend from China we had news that the People’s Bank of China
were, once again, in the market buying gold. XAU/USD had some decent
swings during the session as the news was digested. Highs around
US$2650 were attempted twice but pulled back from there.

Gold swings:

This article was written by Eamonn Sheridan at www.forexlive.com.