The US tax reform optimism induced risk-on moods extended into Asia, pushing the Treasury yields higher alongside the Asian equities. However, the US dollar failed to extend its Friday’s recovery and somewhat stabilized, as the NZD bulls benefited the most from it. The Kiwi ignored mixed NZ services PMI and consumer confidence data, as the unwinding of shorts continued heading into the NZ Q4 GDP release due later this week. The Aussie traded with mild gains on the back of slightly upbeat Australia’s Mid-Year Economic and Fiscal Outlook (MYEFO) and the recent rally in copper prices. Meanwhile, the Yen remained bettered offered, despite surging Japanese exports and trade surplus.
Main topics in Asia
CME officially launches Bitcoin futures trading
The waiting is over, with Bitcoin futures now officially trading on the Chicago Mercantile Exchange.
Japanese exports grew for a 12th straight month in November
Japanese exports rose for a twelfth straight month in November on the back of buoyant overseas demand and the confidence among nation’s biggest manufacturers is at an 11-year high.
Australia MYEFO: Real GDP growth to rise as the drag from mining investment diminishes
Australia Mid-Year Economic and Fiscal Outlook (MYEFO) released today says the real GDP is seen rising as the drag from the mining investment diminishes.
PBOC raises 14-day reverse repo rate by 5 bps to 2.65%
Having raised the MLF, SLF and reverse repurchase agreements last week in a surprise move after Fed, the Chinese central bank (PBOC) raised interest rates on RR, used for open market operations by 5 basis points for the 14-day tenor on Monday.
Aus Treasurer Morrison: No real pressure on cash rate to slow housing market
Reuters reports the latest comments from the Australian treasurer Scott Morrison, speaking in a BTV interview.
Key Focus ahead
The European calendar remains data-light, as we kick-off a brand new week, with the only final CPI data to be reported ahead of the German Bundesbank monthly economic report. Meanwhile, the UK docket will see the release of the CBI industrial order expectations numbers. The NA session also sees a quiet start to a big week ahead, with the Canadian foreign securities purchases and US NAHB Housing Market Index data to be released.
EUR/USD bounces in Asia, eyes EZ CPI, US tax vote for fresh impetus
Fresh bids emerged for the EUR/USD pair near 1.1740 levels in early trades, which prompted a bounce back above the 50-DMA support-turned-resistance at 1.1750, as the bulls fight back control kicking-off a brand new week.
GBP/USD - Yield differential favors USD, bull flag on charts
GBP/USD fell sharply on Friday from 1.3448 to 1.3301 as US tax optimism strengthened the bid tone around the US dollar.
This week's key data in the US and Europe - ING
ING’s view on this week’s key data and events in the United States and the Eurozone can be found below, with the team concluding that as policy stands, they look for three 25bp interest rate increases by the Fed in 2018.
What to expect from this week's US economic data? - Nomura
The Economics Team at Nomura expects the US data over the next several weeks, including the present one, to highlight continued momentum in economic growth to close out 2017.
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
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US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.