ForexLive Asia-Pacific FX news wrap: Chinese equities slammed lower

• BNP Paribas says market analysts are misguided – say take Trump tariff policies seriously
• French president Macron is planning to visit China in the new year
• RBA’s Hunter does not comment on current state of, outlook for, economy or policy
• China’s retaliation against Trump trade sanctions has begun already
• Crypto-friendly French Hill is new chair of the U.S. House Financial Services Committee
• Friday the 13th European Central Bank speaker – Centeno
• PBOC sets USD/ CNY reference rate for today at 7.1876 (vs. estimate at 7.2745)
• Trump looking to dramatically shrink, consolidate or even eliminate top bank regulators
• BNP Paribas are forecasting EUR/USD to parity in 2025
• UK consumer confidence touches 4-month high (not a great result though) at minus 17
• BoJ Q4 Tankan reports that firms expect Japan inflation to remain above 2%
• UBS forecast gold US $2900. Cite growing US debt, central bank demand, falling rates.
• Trump trade adviser Navarro warns on FX manipulation
• Bank of America forecasts Brent crude oil to average $61 per barrel through 2025
• China to send high-level delegation to Trump’s inauguration in Xi’s place
• Jeremy Siegel says gains on S&P 500 in 2025 will be around zero to ten percent
• Trump says costs of automation way above the benefits offered – especially for port work
• EUR/USD – there are extremely large option expiries at 1.0500 on Friday
• Forexlive Americas FX news wrap: ECB cuts rates by 25 basis points
• New Zealand manufacturing PMI plunges deeper into contraction – November 45.5 (prior 45.8)
• US data “the definition of sticky inflation” above 2%. Analysts trim easing forecasts.
• Restoration Hardware emphasizes that it’s ” the worst housing market in 30 years”
• Economic calendar in Asia 13 December 2024 – Bank of Japan Tankan report

It
was a light day for news and data flow here in Asia.

We
did get the Q4 Bank of Japan Tankan report with some better results
than in Q3. Also of note, company inflation expectations remain above
the 2% BoJ target out to five years. While rumours and leaks this
week have indicated the Bank of Japan will leave rates on hold at its
December 18-19 meeting, the Tankan report would not preclude a hike.

USD/JPY
responded by trading up above 152.90 briefly. After dripping back to
152.70 and thereabouts the pair traded above 153.00 for the first
time this month.

The
USD displayed a little strength more broadly also. Like I said, there
was little news flow so the move was attributed to follow-through
after the stronger than expected US PPI data on Thursday.

While
China’s central economic work conference made comforting
announcements on Thursday, the specifics (targets etc) are not
expected until the National People’s Congress in March. Chinese equities were hammered.

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