- China reports a strong surge in travel over the New Year 3 day holiday
- US dollar still gaining ground
- Rising Middle East tensions increase the likelihood of US strikes on Houthi bases in Yemen
- Market anticipates Manufacturing PMI releases from UK, Canada, and US on Tuesday
- Bank of America predicts no rate cut from the Reserve Bank of Australia until 2025
- China Caixin Manufacturing PMI for December 50.8 (expected 50.3)
- The South Korean Opposition Leader has been stabbed at a media appearance
- PBOC sets USD/ CNY reference rate for today at 7.0770 (vs. estimate at 7.0971)
- Bitcoin has hit its highest since April of 2022
- Singapore data: Q4 Advance GDP shows economic growth beat: 1.7% q/q and 2.8% y/y
- United Kingdom data - December BRC Shop Price Index 4.3% vs. 4.3% in November
- ICYMI - China's Xi Jinping made vague promises on the economy in a speech
- Reserve Bank of Australia implements major changes for 2024
- BoA expect the US Federal Reserve will cut its funds rate by 100 basis points in 2024
- Australia final December manufacturing PMI 47.6 (prior 47.7)
- Japan's Aeon (retailer) plans to to raise part-time wages by 7％ in 2024
- Trade ideas thread - Tuesday, 2 January, insightful charts, technical analysis, ideas
- Tuesday morning open levels - indicative forex prices - 02 January 2024
Weekend:
- There is only one trade in global markets right now
- 2023 Currency Rankings: CHF Emerges Strongest, JPY Weakest
- Magnitude 7.6 earthquake hits Japan
- Bank of Israel cuts benchmark rate to 4.50% from 4.75%
- Weekly Market Outlook (02-05 January)
- Five risks for the Canadian dollar in 2024
- China Dec Manufacturing PMI 49.0 (vs. 49.5 expected) & Services 50.4 (50.5 expected)
- What's priced in for the Bank of Canada in 2024 and beyond
The first trading day for the new year here in Asia has been a rise for the US dollar almost across the board.
The yen did show some very early hours strength after the huge weekend earthquake in Japan but USD/JPY quickly reversed and hit highs towards 141.70. EUR, NZD, GBP and more notably CHF lost ground. CAD lost a few points against the US dollar but took some solace from a rise in oil prices.
Rising tension in the Middle East, including the US military sinking Houthi ships in the Red Sea, supported the oil price.
Over the weekend from China we had official December PMIs. The manufacturing PMI slumped into deeper contraction. The unofficial, Caixin/S&P Global manufacturing PMI, was released today. It showed a contrary result, rising a little further into expansion from November. AUD/USD lost ground with the stronger USD during the session but has ended little changed after that better Caixin PMI from China.
In regional news there was an ugly political attack in South Korea. The opposition party leader who was stabbed in the neck. According to local police the outcome was not as bad as it could have been, Lee Jae-myung "suffered minor injuries, including a 1 cm laceration on his neck...the bleeding was stopped at the scene, he is conscious, and the amount of bleeding is minimal." The won fell against the USD (alongside broader gains for the dollar, as already noted).
