Forex Today: Yen hit by mixed JP data, a quiet session ahead

A quiet Asian affair, as slack trading extends into a third day amid holiday-thinned pre-New Year week. Market paid little attention to a mixed set of Japanese data, although the sentiment around the yen took a beat, triggering a sharp buying wave in USD/JPY. While the Antipodeans outperformed on the back of profit-taking and tumbling treasury yields, which exerted downward pressure on the USD across the board.

We have yet another light trading calendar in Europe, with the UK traders returning to markets after a holiday-break, expectant of the NNA mortgage approvals data. While the US docket offers only the pending home sales data for today.

Main topics in Asia

WTI eases from 2-week tops, OPEC, non-OPEC cuts in focus

Having rallied 1.5% yesterday, oil futures on NYMEX take a breather and retreat from two-week highs in the Asian trades this Wednesday.

BOJ’s outlook for Reit market in 2017 - FT

The Financial Times (FT) carrying an article on Wednesday, providing some thoughts as to what the Bank of Japan (BOJ) will be doing in the real estate investment trust (Reit) market in 2017.

NZD/USD: Strongest in Asia, eyes post-Christmas high

The NZD/USD pair snapped previous losses and resumed the recovery mode from multi-month lows amid broad based USD retreat and tumbling treasury yields.

Australian stocks rally, rest of Asia trade mixed

The Australian traders returned to markets with a bang, after having enjoyed Christmas and Booking Day holiday season, triggering a fresh rally on the region’s index.

Key focus for the day ahead

EUR/USD: Bulls regain poise, 1.0500 eyed?

The EUR/USD pair clings onto a fresh stretch of gains seen in the Asian session this Wednesday, and now awaits fresh impetus for the next leg higher, as holiday-thinned trading continues to dominate markets.

European politics to shape 2017 – Commerzbank

Analysts at Commerzbank suggest that the major challenges for the euro area in the next 12 months are political.

China: Growth picture looks intact for now - Commerzbank

EM strategists at Commerzbank think that China is likely to reach its 6.5% growth target next year but risks are mounting – and this is where overly optimistic expectations for EM growth come into play again.