- Economist who invented the yield curve recession indicator says it different this time
- An upward revision in BOJ inflation forecasts unlikely to trigger immediate rate rise
- WSJ Fed 'whisperer' on the December minutes' "uncharacteristically blunt words of warning"
- More on China's priority for the recovery and expansion of domestic consumption
- China Caixin Services PMI for December 48.0 (vs. prior 46.7)
- PBOC sets USD/ CNY mid-point today at 6.8926 (vs. estimate at 6.8955)
- Chevron exports of Venezuelan oil being slowed by loading delays
- UK - new car registrations rose 18% in December, 5th consecutive month of growth
- ICYMI - Saudi Arabia produced just below its OPEC+ target in December, oil exports steady
- PBOC wants to boost domestic demand, expand consumption
- Amazon to lay off around 17,000 workers (up from 10,000 previously expected)
- FOMC responses incoming (spoiler: plenty more tightening to come from the Federal Reserve)
- FT reports that "Foxconn’s biggest Chinese rival wins premium iPhone contract"
- UK PM Sunak to announce law enabling employers to sue unions and sack employees re strikes
- Australian December services PMI 47.3 (prior 47.6) & Composite 47.5 (prior 48.0)
- Trade ideas thread - Thursday, 5 January 2023
- Oil - private survey of inventory shows headline build greater than expected
- Forexlive Americas FX news wrap: Manufacturing and Fed minutes raise questions
After the big fall in the US dollar during Europe and the US on Wednesday movement here in Asia was more subdued.
USD/JPY fell away initially, back under 132.00, but has since tracked back to the middle of its day’s range as I update.
Major FX otherwise is mixed. AUD/USD is on the weak side, as is CAD against the USD.
News and data flow during the session was fairly light. China’s December services PMI (the privately surveyed PMI) improved from November but remained in contraction, as expected. The details of the report do offer some encouragement of improvement to come in the months ahead (see bullets above). Hong Kong’s services PMI was also published, coming at 49.6 in December from 48.7 in November. Also improved but still in contraction.
HK's Hang Seng index traded at its highest level since July. Mainland shares also rose.
Oil inched a little higher.
