News and data flow were almost non-existent. We did get South Korean December inflation data:

  • 0% m/m (vs. +0.2% expected and -0.5% in November)
  • 3.2% y/y (vs. 3.26% expected and 3.3% in November)

It was a subdued session for major forex rates.

The Chinese yuan strengthened. The People’s Bank of China set USD/CNY at 7.0827, its lowest since the end of May. Offshore yuan, USD/CNH, hit a 6-month low. The higher yuan lent support to the AUD, which traded in a small range to highs of circa 0.6845 against the USD, before dribbling off just a few ticks. NZD/USD ticked higher also and hasn’t dribbled back as much as AUD has. EUR/USD traded in a similar pattern to AUD/USD. USD/JPY is not a lot changed after its wild ride on Thursday.

Daily candles USDCNH  wrap chart 29 December 2023 2

As a heads up, China’s National Bureau of Statistics (NBS) is releasing December official PMIs on Sunday, December 31 (or 123123 if you prefer):

  • at 0100 GMT, 2000 US Eastern time on Saturday

They really know how to throw a NYE party that lot!

Economic calendar in Asia 29 December 2023