ForexLive Asia-Pacific FX news wrap: Japan GDP data much higher than expected, yen up

• Japan December 2024 Industrial Production -0.2% m/m (preliminary +0.3% m/m, prior -2.2%)
• China’s Xi attended a symposium on private enterprises
• Federal Reserve speakers Monday include Harker, Bowman and Waller (Waller in the evening)
• BoJ likely to raise rates as early as May if Shunto wage talk results as strong as 2024
• Japan chief cabinet secretary Hayashi warns on becoming target of Trump tariffs
• PBOC gov on Sunday – market will continue decisive role in deciding the yuan exchange rate
• Trump’s director of the National Economic Council regularly ‘meeting’ with Fed’s Powell
• Goldman Sachs has raised its 12-month forecasts for key Chinese stock indices
• UK businesses planning ‘most brutal round of job cuts in a decade’
• PBOC sets USD/ CNY reference rate for today at 7.1702 (vs. estimate at 7.2617)
• Japan economy minister Akazawa is wary about the strong GDP result. ps. Yen still rising.
• Singapore non-oil domestic exports (NODX) -2.1% in January (vs. -1.1% expected, prior +9%)
• Trump / Musk DOGE seeking to access US IRS personal taxpayer data
• Nomura expect a hawkish rate cut from the Reserve Bank of Australia this week
• USD/JPY traded under 152.00 after the very strong Q4 economic growth data
• Japan Q4 GDP surges to +2.8% annualized (from +1.0% expected), deflator hits 2.8% – yen up
• HSBC: ECB’s Dovish Signals and Market Implications
• UK – 64K birds are being culled after a suspected case of bird flu
• EURUSD could climb 5% if (big if) Russia Ukraine ceasefire is followed by gas supply boost
• On Monday, February 17, 2025, all major U.S. financial markets will be closed
• BoA survey shows the US dollar is expected to top out in Q1 2025
• NZIER RBNZ Shadow Board recommends OCR cut by 50bp on February 19
• Ukraine talks between US and Russian officials in Saudi Arabia expected on Tuesday
• New Zealand January services PMI jump into expansion at 50.4 (prior 47.9)
• Trade ideas thread – Monday, 17 February, insightful charts, technical analysis, ideas
• Trump says working very hard to make peace, Zelinskiy involved
• Monday morning open levels – indicative forex prices – 17 February 2025
• Newsquawk Week Ahead: RBA, RBNZ, FOMC Minutes, PMIs, Canada, UK and Japan inflation
• Weekly Market Outlook (17-21 February)
• Forexlive Americas FX news wrap 14 Feb: Retail sales show consumer weakness to start year

Q4
2024 GDP data from Japan came in much stronger than expected at +2.8%
y/y (expected +1.0%), sending the yen immediately higher. USD/JPY
dropped to around 151.90 before showing some stability but the move
lower soon continued towards 151.50.

Q4
GDP showed Japan’s
economy expanding
for third straight quarter with
positives from net exports and business capex, amongst others, while
domestic demand did drag a little.

The
USD showed some weakness more broadly, but much of this dissipated as
the session wore on.

Gold
showed some life, trading back above USD2900.

From
China today was the news that Xi attended a meeting with Chinese key
private sector leaders and gave a sup[portive speech. The read on
this is the meeting signals a more supportive stance from his
government toward private firms after a long time of ignoring the
sector. Xi’s presence at the symposium today is point to
potentially substantial endorsement.

Take
note, its a US holiday on Monday, February 17, 2025:

• the
  NYSE and NASDAQ are closed
• bonds
  will not trade
• FX
  trade will be light liquidity
• CME
  futures close at midday Central time and reopen at 5pm (1300 – 1800
  US Eastern time)

In
Canada the TSX will be closed.

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