- *North Korea launched their rocket today. FX impact was almost non-existent. USD/JPY popped about 8 points then fell back quickly.
- There were some comments from the White House and Boehner re the Cliff: White House proposed 1.4Tr in new taxes – Boeher said “Not acceptable” – halted the rise in EUR/USD but muted impact.
- Report published today by the Australian Bureau of Resources and Energy Economics that Australia will increase its production of resources and energy this year but export earnings expected to fall 4 percent due to lower prices.
- Australia data: Wpac Dec. Consumer Sentiment down 4.1% (prior up 5.2%), even after the Dec. 4 rate cut; breaking a string of recent positive results.
- Japan data: October Machinery Orders (MoM) up 2.6% (+3.0% expected) – first rise in 3 months
- Japan data: October Tertiary Activity Index -0.1% (-0.4% expected)
- Japan data: November Domestic CPGI YoY -0.9% (-0.9% was the expected result)
- Comments from Nomura’s chief economist in Shangahia, Zhang, that he sees China Inflation to 4% in 2013 and that there may be 2 rate hikes were followed by a weakening in the AUD/USD
Quiet day in the currencies:
- EUR/USD traded a little higher (1.3014) but settled into a tight range
- USD/JPY spiked 8 points (82.63 high) on the Nth. Korea rocket launch and then fell back to settle in a tight range also. Traded to new day’s highs (82.70) over the Tokyo lunch period as the USD put on a little strength vs. other majors also.
- AUD/USD as high as 1.0541 before softening marginally
- Cable, NZD and CAD all in dead ranges
