Asia Summary and Highlights 3 January
PBOC says interest rate cuts are likely in 2025 "at an appropriate time"
Asia Session
The PBOC said that interest rate cuts are likely in 2025 "at an appropriate time" and seems to be boosting the antipodeans. While such remark has been circulating for weeks, the exact magnitude are yet to be announced, thus the Chinese equity market are seeing little reaction while HK equities somewhat supported, U.S. equities are little changed. The AUD/USD is up 0.15% to 0.6213, NZD/USD is up 0.13% to 0.5602 while USD/CAD slipped 0.08% as oil gain thirty cents.
USD/JPY looks to be temporarily capped by the 158 figure. There has been little headlines with the closet being Washington Post reporting that Biden will block sale of US Steel to Nippon Steel. We are not hearing anything from the BoJ nor Japanese officials on current FX level. USD/JPY is trading 0.12% lower at 157.33. Else, EUR/USD is up 0.06% and GBP/USD up 0.09%.