Forex Today: Yen jumps in sync with Yuan, focus on Carney’s Brexit testimony

Forex today in Asia witnessed good two-way businesses, driven by the US dollar dynamics and the price-action surrounding the Treasury yields. Also, a solid rise in the Yuan against its American counterpart amid the recent US-China trade truce dominated the sentiment across the financial markets so far this Tuesday.

Among the Asia-pac currencies, the USD/JPY pair stalled its march towards the 114 handle and reversed sharply to test the 113 level, as the Yen regained strength following the sell-off in the Treasury yields and a rally in its Chinese counterpart, the Yuan. The Antipodeans also benefited from the Yuan upsurge, but the gains were limited by RBA’s status-quo and tumbling Asian equities. The Asian indices slipped amid stronger currencies that usually weigh on the export-oriented stocks.

Both crude benchmarks traded nearly 0.80% higher while gold prices on Comex firmed up to test the 1250 mark, as the bulls await the sentiment on the European open for fresh trading impetus.

Main Topics in Asia

PBOC Governor Yi: Will keep monetary policy flexible - Reuters

US 10-year treasury yield drops below 200-day MA for the first time since November 2017

China considering lowering tariffs on US car imports - China Daily

Saudi oil output hit record high in November - Bloomberg

South Korea, US to hold senior economic dialogue on Dec 7th

Doubts on the rise about the US-China ceasefire - Reuters

Reserve Bank of Australia leaves cash rate unchanged at 1.50%

China's 10-year bond yield hits lowest in 19 months

Key Focus Ahead

The EUR calendar remains relatively light today, with no first-tier macro news from the Euroland while the second-liner PPI numbers could offer some incentives to the traders. From the UK docket, the construction PMI for November will be released at 0930 GMT.

In the NA session, the Canadian labor productivity data will drop in at 1330 GMT, followed by New Zealand’s GDT price index due around at 1430 GMT. Also, in focus remains the API weekly crude oil stocks data that will be published at 2130 GMT.

Apart from the macro data, we have the following central bankers due to speak later today.

0915 GMT: BOE Governor Carney’s testimony on the Brexit withdrawal agreement

1500 GMT: FOMC member Williams

1800 GMT: BOE MPC member Vlieghe

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