Asia Summary and Highlights 23 December

Asia Session

Most major currency pairs have opened slightly higher against the USD as risk sentiment seems to have improved from the previous week. Major equity indexes, both regional and U.S. are in the green. AUD/USD remained 0.11% higher than Friday's close at 0.6258, NZD/USD is 0.02% higher at 0.5655 while USD/CAD slipped 0.1% on stronger oil as there are some geopolitical headline crossed the wire regarding the energy field.

The FX market is so far range bound on Monday market participants are preparing for Christmas. There are more headlines coming through on Honda and Nissan integration talks. It will create a conglomerate yet we are not even in early stages. USD/JPY is trading 0.12% higher at 156.55. Else, EUR/USD is up 0.12% and GBP/USD is up 0.09%.

North American session

US core PCE prices were weaker than expected in November, rising by only 0.1%, while gains of 0.3% in personal income and 0.4% in spending were also slightly below expectations. The USD dipped on the release and while the initial reaction was modest, USD losses extended into the afternoon, while equities rallied. 

GBP/USD was particularly strong, rising to 1.26 from near 1.25. EUR/USD gains stalled ahead of 1.0450 as EUR/GBP slipped below .83 but EUR/CHF rebounded back above 0.93. USD/JPY slipped to 156 from 156.80. AUD/USD rose to .6270 from .6230, while AUD/CAD rose to .90. The leader of Canada’s New Democratic party stated he would vote against the government in a vote of confidence, raising risk of an election early in 2025. Efforts to avert a US government shutdown continued.