Forex Today: Kiwi sees good 2-way action, Carney’s speech, US tax re-vote eyed
|Forex today was a quiet affair in Asia, with limited moves prevalent as markets preferred to stay on the sidelines amid subdued pre-Christmas trading activity, while expectant of the passage of the US tax bill vote once again. However, the Kiwi emerged an exception, as the pair enjoyed some good two-way price action on dismal NZ trade figures and a retreat in Treasury yields across the curve. The Yen ignored the latest North Korea threat and traded on the back foot against the American dollar, while the Aussie remained flattish on cautious Asian equity markets as well as commodities’ prices.
Main topics in Asia
NZ: Q3 current account narrows to 2.6% of GDP – Westpac
The New Zealand’s current account deficit narrowed to 2.6% of GDP in the year to September, notes Michael Gordon, Senior Economist at Westpac.
NZ: Imports surged to new all-time high of $5.8 billion in November
"Imports in November 2017 were valued at $5.8 billion. The value exceeded last month’s record of $5.4 billion," Statistics New Zealand reported on Wednesday.
North Korea begins tests to load anthrax onto ICBMs - BBG
Japan's Asahi newspaper quoted an unidentified person related to South Korea's intelligence services, as saying that North Korea begins tests to load Anthrax onto ICBMs, Bloomberg reports.
Sources: US gives China draft proposal for tougher North Korea sanctions - RTRS
Reuters quoted a Western diplomat, who did not want to be identified, as saying that the US has given China a draft resolution for tougher UN sanctions on North Korea and hopes for a quick vote on it by the UN Security Council.
Coinbase to offer trading in Bitcoin Cash
Headlines crossed the wires last hours, via Reuters, citing that Coinbase exchange will start offering trading in the Bitcoin offshoot Bitcoin Cash.
Key Focus ahead
There is nothing major, in terms of the economic news, to report in the European session ahead, except for a slew of the second-liner data from Euroland and the UK. The German PPI, Eurozone current account, and the UK CBI realized sales are slated for release.
Meanwhile, the German Buba President Weidmann’s speech will be eyed ahead of the BOE Governor Carney’s testimony before the Treasury Select Committee (TSC) for fresh impetus ahead of the US open.
On the data front, the NA session sees the releases of the Canadian wholesales sales, SNB quarterly bulletin, US existing homes sales, and EIA crude inventories report.
GBP/USD regains 1.3400 in Asia, what’s next ahead of Carney’s speech?
After a brief stint of consolidation in early trades, the GBP/USD pair resumed its recent upmove and regained the 1.34 handle on Brexit optimism, but the buyers failed to retain control above the last, as sentiment sours on the back of the latest North Korea headlines.
EUR/USD - Bull flag breakout or H&S completion?
The EUR/USD rose to 1.1849 yesterday and remained bid in Asia as the 10-year US-German yield spread remains flatlined above 207 basis points despite US tax reform optimism.
Goldman Sachs: ‘Stellar' demand may fast-forward OPEC’s exit – BBG
Bloomberg cites the key highlights from Goldman Sachs’ latest report on the oil-price forecasts.
BOJ Preview: Kuroda likely to squash expectations of near-term policy normalisation
The Bank of Japan is expected to maintain its massive stimulus program at a monetary meeting this Thursday despite growing signs of improvement in the economy, as domestic inflation remains stubbornly below the BoJ’s 2% target rate.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.