Forexlive Asia-pacific FX news wrap for Monday 30 December 2024 – holiday trade persists

• PBOC sets USD/ CNY reference rate for today at 7.1889
• People’s Bank of China Governor says room for lower rate
• Japan final manufacturing PMI (December 2024 ): 49.6 (prior 49.0)
• China’s efforts to prop up its flagging stock market has made yuan a casualty
• Holzmann says European Central Bank could consider waiting longer before its next rate cut
• EURUSD Technical Analysis
• Former US President Jimmy Carter dies
• Bitcoin price analysis with this support test coming soon
• China’s central government urges local governments to give cash handouts for New Year
• Trade ideas thread – Monday, 30 December, insightful charts, technical analysis, ideas
• Monday morning open levels – indicative forex prices – 30 December 2024

Weekend:

• SPX index price prediction (my bullish and bearish orientation)
• Debt ceiling drama returns: Yellen warns of mid-January deadline

It was a fairly subdued session with unofficial holidays thinning out interest and trading activity.

News and data flow was light. Japan’s manufacturing PMI for December was confirmed to have remained in contraction, although the reading improved from November.

People’s Bank of China Governor Pan Gongsheng indicated the Band has room to lower rates. As I noted at the time a contraint the Bank is facing is the weak yuan. Further reducing rates will be viewed by the Bank as raising the likelihood of further capital movement out of the country, which they’d prefer to avoid.

In news over the weekend China’s central government has urged local governments to give cash hanbdouts ahead of New Year holidays in order to bolster demand in the economy.

USD/JPY update, tracking just below 158.00:

As I post BTC/USD remains under US$94K.

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