- Heads up for Chinese President Xi Jinping to speak on Monday
- Federal Reserve speakers coming up on Friday 14 January 2022 (yes, more of them)
- China December trade balance US$94.46bn surplus
- The US bill to impose sanctions on the Nord Stream 2 pipeline has failed
- Here's the piece on an eventual (note, eventual) BOJ rate rise
- China 2021 total year trade surplus 4.36tln yuan
- North Korean hackers stole a total of $395 million worth of crypto coins in 2021
- PBOC sets USD/ CNY mid-point today at 6.3677 (vs. estimate at 6.3611)
- The White House confirms Biden has chosen his three remaining Federal Reserve nominees
- China Cinda cancelled its interest to buy a 20% stake in Ant Group’s consumer finance unit
- Yen seeing a bid
- China reports 143 new local coronavirus cases (prior day 124)
- South Korean central bank hikes its base rate by 25bps
- Australian owner-occupied home loans for November 7.6% m/m
- UK media (The Times) says COVID-19 passes are expected to be abandoned
- Goldman Sachs favours overweight US equities - says valuations alone are not reliable
- Japan December PPI 8.5% y/y (expected 8.8%)
- Fed's Waller says 3 rate hikes in 2022 are a good baseline position
- Goldman Sachs trade recommendation for long CAD against AUD and JPY
- China stopped 182 international flights from entering in the past 2 weeks
- Manchin and Sinema set to go to the White House later today to meet with Biden
- Fed's Daly says it'd be quite reasonable to raise rates in March
- Trade ideas thread - Friday 14 January 2022
- Fed's Harker says fed action on inflation is required
USD/JPY and yen crosses dropped away during the session here. Reuters dropped a piece saying Bank of Japan policymakers are debating how soon they can start telegraphing an eventual interest rate hike, citing unnamed sources. This was heavily caveated (saying an actual rate hike is hardly imminent) but nevertheless it was taken note of. USD/JPY is down from highs circa 114.20 earlier in the session to around 113.70 as I post (just under there).
Elsewhere it was a mixed bag indeed. EUR/USD, GBP/USD are both up on the session, as is gold, while AUD/USD and NZD/USD are a touch weaker.
News flow was light. On the data front we had an indication to wholesale inflation from Japan 9the November PPI). This rose on a y/y basis again (up for the 10th month in a row) while on a m/m basis it fell for the first time in 13 months. Australian housing finance showed lending for owner-occupied dwellings rose for the first time in 6 months.
Fed-speak continued during Asia, with more Fed officials flagging rate hikes this year, up to 5 said on (Waller – if the inflation rate warrants it; he added that if the CPI drops back there may be less than 3 (see bullets above)).
Regional equities took their cue from the softer US markets on Thursday, down on the day so far.