Holiday-thinned light trading extended into the first trading session of the New Year, with the Aussie having emerged the top gainer on the back of higher oilprices and solid Chinese Caixin manufacturing PMI data. The Kiwi too followed suit while the Yen remained on the defensive, despite North Korea headlines and subdued trading activity seen around the Asian stocks. Meanwhile, the US dollar remained depressed against its major rivals, meandering near three-month lows of 91.80.
Main topics in Asia
China’s Caixin Manufacturing PMI hits 4-month highs in December
China’s Dec Caixin manufacturing PMI came at 51.5 vs 50.6 expected and 50.8 last, reflecting that the operating conditions improved at the quickest pace for four months.
Australian banks freeze accounts tied to cryptocurrencies
The Sydney Morning Herald reported over the weekend that Cryptocurrency trader and Youtuber Alex Saunders called out National Australia Bank (NAB), ANZ, the Commonwealth Bank of Australia…
N. Korea’s Kim Jong Un: ‘I have a nuclear launch button on my office desk’
Reuters reports comments from the North Korean leader Kim Jong Un delivered during the annual New Year’s address to North Korean citizens on Monday.
HKD overnight Hibor drops the most intraday in 2 months
Livesquawk is out with the latest headline, citing that the Hong Kong Dollar (HKD) overnight Hibor drops 66 bps, registering the biggest intraday drop in two months.
Brexit uncertainty weighs heavily on British companies – The Telegraph
The UK Telegraph, in its latest article, cited the quarterly International Business Report from accountancy firm Grant Thornton, highlighting that the Global business optimism is at a record high, but Brexit uncertainty weighs heavily on the UK firms.
Key Focus ahead
Heading into Europe, a raft of final manufacturing PMI reports are due on the cards from the Euro area economies, as attention turns back towards the fundamental drivers. Also, of note remains the UK manufacturing PMI release, which is expected to arrive a tad weaker in December. Later in the NA session, the NZ GDT price index and US final manufacturing PMI will keep the traders busy while full markets are expected to return from the second-half of this week.
EUR/USD supported at 1.2000 ahead of EZ PMIs
The EUR/USD pair extends its upside consolidative mode into Asia, now looking to retest three-month tops of 1.2030 levels ahead of the Euro area final manufacturing PMI releases.
GBP/USD: Bulls target 1.3550 ahead of UK manufacturing PMI?
The bid tone around the GBP/USD pair weakened slightly in the Asian trades on the first trading session of this year, leaving the rates defending mild gains ahead of 1.35 handle.
The biggest threats to China’s economy in 2018 – BBG
While China is starting from a position of strength, with full-year growth in 2017 poised for its first acceleration since 2010, the expansion is seen slowing in 2018.
Risks for global FX market in 2018
There is a number of risks behind the general view of US Dollar appreciation driven by the gradual interest rate increases by the Federal Reserve.