ForexLive Asia-Pacific FX news wrap: Happy New Year! | Forexlive


Weekend:

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).



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