Asia Summary and Highlights 23 Dec
Quiet Tuesday
Asia Session
The Japan’s finance minister Katayama said authorities have a “free hand” to act against speculative yen moves. It is by far the strongest language we have heard from Japanese officials and seems to have supported the JPY. USD/JPY is trading 0.65% lower at 155.99 while both U.S. Treasury and JGB all lower.
It is a quiet Tuesday as we see market participants preparing for Christmas and restrain themselves from positioning. Major equity indexes are seeing limited changes heading into London session. AUD/USD is trading 0.1% higher at 0.6665, NZD/USD is trading 0.31% higher while USD/CAD slides 0.06%. Else. EUR/USD is up 0.14% and GBP/USD is up 0.2%.
North American session
The EUR had made gains in the Americas versus the USD, with no fundamental news behind the NY move other than end of year flows. EUR/USD is mixed multi week with the U.S. equity market helping USD sentiment, but the EUR still seen to be undervalued versus the USD and at risk of further FX hedging for huge portfolios in the U.S. by European investors. Tuesday’s Q3 US GDP is seen to be the last major number before 2026.
Other USD majors followed the move, with USDJPY dipping below 157.00 and charts now opening up scope for further JPY gains to 156.00. AUD/CAD and NZD also participated in the NY move, with AUD seen as a good story in 2026 due to Fed rate cut prospects versus steady to higher RBA rates.