- December New Zealand Manufacturing PMI 50.1 (vs 48.8 prior)
- WSJ article: RBA Board Member Urges ‘Active’ Economy Management
- South Korean GDP +0.4% (vs. +0.5% expected), while The Y/Y is +1.5% (Prior +1.5%, expected +1.9%)
- Taiwanese Premier asks the central bank to monitor Yen weakening
- December Japan Trade deficit of Y641.5B (vs. -Y522.8B expected), giving 2012 the record for the worst ever annual trade deficit
- January HSBC Flash China Manufacturing PMI at 51.9 (vs. 51.7 expected)
- New Zealand Dec Credit Card Spending +1% m/m (vs. +0.4% prior)
- Nth Korea says it plans more rocket launches and the planned nuclear test are “aimed” at the U.S.
- US Nth Korean envoy Davies says it would be a “mistake” for Nth Korea to test a nuclear device
AAPL announced earnings in late NY, which was early Asia time for us. While Apple Investors were being put to the torch courtesy of a 10% after-market share price fall we saw a bit of ‘risk off’ in the currencies, with EUR and AUD falling a little, NZD and GBP not so much, and USD/JPY putting in a test of the 88.75 resistance. Thing soon calmed down, with only the AUD extending its fall, seemingly in response to a story in the Wall Street Journal of an RBA member making very dovish overtures (the story was a rehash of a story in the Australian press overnight).
Japanese Trade Balance data was next up, it showed 2012 was the highest trade deficit for Japan on record. The USD/JPY spiked to just 88.68 but ran into sellers again and dipped to 88.45 very quickly.
After the HSBC China Flash PMI (highest result in 2 years) the AUD started higher, retracing nearly all of its morning loss before turning lower and heading back to its lows. The AUD seemingly tracked the Shanghai Composite tick for tick on the session. The NZD largely traded with the AUD.
USD/JPY traded higher after the China figures, too – tackling the 88.70/80 resistance again and finally breaking through. It then consolidated below 89 before running quickly to an 89.31 high, where it stopped and then retraced some of its gains into early Europe.
GBP/USD was tightly rangebound, EUR/USD traded as if denying rumours that it was floating currency pair – also tightly rangebound.