ForexLive Asia-Pacific FX news wrap: Awaiting the Federal Open Market Committee (FOMC) |


The
New Zealand dollar dropped on the session, a notable move given
subdued changes elsewhere. The smoking gun for the drop appeared to
be the report from Westpac slashing their expectation for Q4 CPI in
half to 3%. If inflation does fall away rapidly it means the Reserve
Bank of New Zealand should not need to hold rates ‘higher for
longer” and thus undercuts support for the NZD, at the margin.

From
Japan today we had the Q4 Tankan report, a survey of thousands of
Japanese firms of all sizes, across a wide range of industries
conducted by the Bank of Japan. It showed the Japanese economy
continues to improve, albeit slowly. It also showed that business
inflation expectations remain above 2% (the BOJ target) out for five
years!

The
USD gained slightly: EUR, GBP, CAD, AUD all down a few points on the
session.

As
the headline to the post says, markets are mainly now waiting for the
Federal Open Market Committee (FOMC) and Powell.

The
oil price remained heavy, a
draft global statement
at
COP28 has called for the world to transition away from fossil fuels
by 2050.



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