ForexLive Asia-Pacific FX news wrap: RBA on hold, less hawkish

• FX option expiries for 10 December 10am New York cut
• RBA leaves its cash rate unchanged at 4.35%, as expected
• China trade data dribbling out: Jan – Nov exports +5.4% y/y & imports +1.2% y/y
• Yuan update – finding a few bids in the wake of promises
• Australia’s largest fund manager expects RBA hold today, cut in May
• JP Morgan says crypto had a ‘monumental’ month in November
• China Xi holding meetings with ‘heads of major international economic organizations’ today
• ICYMI – Former Binance CEO says it’s ‘inevitable’ for China to build a BTC reserve
• Fed Expected to Cut Rates in December and January: RBC Analysis
• PBOC sets USD/ CNY central rate at 7.1896 (vs. estimate at 7.2806)
• Australian November business confidence -3 vs. prior 5
• Australian November business confidence and conditions coming up at the bottom of the hour
• Japan’s Economy Minister discusses Q3 GDP data – start of a wage and price cycle
• South Korea says will respond to excess volatility with stabilizing measures
• The Bank of Canada is expected to cut by 50bp again this week – preview
• Australian Consumer Confidence slumps nearly 3 points in a week
• S&P 500 forecast to hit 7,100
• Forexlive Americas FX news wrap for 9 Dec: The USD mixed to start the new week.Stock lower
• Bank of America on the upcoming US CPI report – rally vs. volatilty
• US Dollar mirroring post-election rally; HSBC analysts predict renewed strength
• ICYMI – China opened the taps Monday afternoon
• Major indices close moderately lower across the board
• Trade ideas thread – Tuesday, 10 December, insightful charts, technical analysis, ideas

The
focus for the session was on Chinese trade data and the Reserve Bank
of Australia December monetary policy decision.

China’s
trade data showed strong exports in November, ahead of expected
increased trade imposts to come under the new US administration. Trump’s
extra tariffs will enter the scene after today’s data showed:

• China’s
  November trade surplus with the US reached $34.9 bn, from $33.5 bn
  in October,
• for
  the January – November period, China’s trade surplus with the US.
  hit $326.8 bn.

China’s
yuan strengthened on the session, catching a bid after yesterday’s
stimulus promises.

Prior
to the Reserve Bank of Australia announcement we had the National
Australia Bank business survey for November, showing

• business
  confidence fell sharply
• business
  activity conditions also fell, with retail and manufacturing
  reporting the worst conditions, while services sector conditions
  improved

The
Reserve Bank of Australia left its cash rate unchanged for the ninth
meeting in a row at 4.35%, its highest in 13 years. The Statement
softened the Bank’s hawkish stance though, with the Board saying:

• its
  gaining some confidence that inflationary pressures are declining in
  line with these recent forecasts (but added the caveat that risks
  remain)
• and the
  Statement removed its “not ruling anything in or out” words

AUD/USD
declined into the announcement and extended its loss after.

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