ForexLive Asia-Pacific FX news wrap: Awaiting the US jobs report

• China’s December exports are expected to jump from November – beat the tariffs race
• Some chatter about on the potential for AUD/USD to drop under 0.60
• Toyota unions to aim for higher wages, better conditions
• People’s Bank of China briefing next week – note for the diary
• PBoC pauses bond buying – more
• PBOC sets USD/ CNY reference rate for today at 7.1891 (vs. estimate at 7.3138)
• ANZ now forecasting a February Reserve Bank of Australia rate cut
• PBOC pauses government bond purchases in the open market
• Japan Eco Min Akazawa: ‘critical stage’ in eradicating the public’s deflationary mindset
• US non-farm payrolls data due today – the critical key ranges for estimates to watch
• Australian household spending +0.4% m/m in November (expected +0.7%)
• Goldman Sachs forecast higher inflation under Trump, but Fed will cut rates anyway
• Japan November Household Spending +0.4% m/m (expected -0.9%)
• Potential Interest Rate Cut in Australia: Analysts Divided
• Navigating Chinese Equities: Challenges and Opportunities Ahead
• Goldman Sachs’ three key risks for equities (#3 is a cracker – competition from Bitcoin!)
• “Trump’s gambit to buy Greenland may sound ridiculous, but it’s not impossible”
• Canadian PM Trudeau says ‘we would definitely respond’ if Trump does impose tariffs.
• US and Denmark lobbied for Greenland’s largest rare earths deposit not to be sold to China
• Trade ideas thread – Friday, 10 January, insightful charts, technical analysis, ideas
• Crypto Market Slumps for Third Consecutive Day, Bitcoin Drops Below Key Support

Major
FX was relatively subdued ahead of the US NFP data later on Friday.
USD/JPY consolidated above 158.00

News
and data flow were light.

Japanese
November household spending data beat, while Australian household
spending data for November disappointed.

While
on Australia, ANZ changed its Reserve Bank of Australia rate cut
forecast to February from May. ANZ and CBA are now both tipping a
February 25bp rate cut (the RBA meeting is on the 17th
and 18th).

China’s
central bank announced on Friday that it will temporarily halt
treasury bond purchases due to a shortage of supply, leading to a
rise in yields across various maturities.

• The
  People’s Bank of China (PBOC) stated it would consider resuming bond
  buying based on supply and demand conditions in the government bond
  market ahead,
  but for now have paused buying.
• This
  decision follows the PBOC’s repeated warnings about bubble risks in
  China’s overheated bond market, where long-term yields have
  consistently reached record lows.
• In
  response to the announcement, yields, which move inversely to bond
  prices, surged. The 30-year treasury yield rose by five basis points
  in early trading, while the 10-year yield increased by four basis
  points.

Offshore yuan also appeared to be waiting for the US data:

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