- Japan November machinery orders -3.0% MoM
- Australian unemployment rate falls to multi-year low at 5.0%; adds only 2,300 jobs against expectations of 25,000
- China sets CNY at new record high of 5.5997 against the USD
- South Korea raises rates by 25bps to 2.75%
- Regional central banks intervene heavily to buy USD/Asia
- Regional stockmarkets +0.5% on average, Australia +1.5%
- Gold and Oil steady at $1386/oz and $92/bbl
It has been a relatively quiet session in Asia, with consolidation of the big overnight moves in the majors and much of the action in Asia has been in emerging markets. The rate hike in Korea and the stronger CNY have seen other Asian currencies strengthen which in turn has led to intervention from ACBs. This will probably lead to some buying of EUR/USD, cable, AUD/USD etc by the same ACBs before the day is out.
EUR/USD opened around 1.3130 and has drifted slowly lower amid some profit taking in EUR/USD and moderate EUR/JPY sales out of Tokyo. Range: 1.3101/38
AUD/USD opened at .9960 and drifted lower before falling quite sharply after the disappointing new jobs data. A closer look showed an improving unemployment rate and the losses were quickly undone. Ranges: .9918/72
USD/JPY has once again oscillated either side of 83.00 in very quiet ranges, 82.97/83.14. The disappointing machinery orders were again ignored but the recent industrial data out of Japan remains quite negative.
Cable has also been quiet in a 1.5744/68 range with the cross trading .8318/38.
