Forex Today: Yen unfazed by BoJ’s steady policy, focus shifts to US data

Forex today witnessed pre-Christmas subdued trading activity in Asia, characterized by slowing volumes and limited macro news. The NZ GDP report showed upward revision to the Q3 growth figures, but the Kiwi failed to extend the GDP-baked rally beyond 0.7020 levels. Meanwhile, the Aussie ran into resistance near 0.7675 region, despite the latest rumor mills that China may lift its coal import restrictions. The recovery in the Yen from weekly lows against its American peers lost legs after the BoJ left its policy steady while keeping the economic assessment unchanged.

Among other related markets, the Asian stocks traded subdued, as the optimism over the US tax cuts legislation wanes. Both crude benchmarks steadied as rising US output continues to negate the impact of falling crude stockpiles. Gold prices remained better bid above the $ 1270 mark, despite the recovery mode seen in the US dollar across its main competitors.

Main topics in Asia

NZ Q3 GDP rose 0.6%, big upward revisions to history - Westpac

Michael Gordon, Senior Economist at Westpac, notes that today's upbeat revisions in NZ Q3 GDP have positive implications for the RBNZ monetary policy.

UK demands total secrecy in trade talks with the US

According to iNews, the UK has demanded total secrecy for trade talks with the US. 

The UK consumer confidence hits a 4-year low in Dec

According to the latest report published by GfK in early trades, the UK consumer confidence deteriorated sharply and hit a four-year low in December, exposing risks further to the downside in 2018, Bloomberg reports.

Australia’s Treasurer Morrison: Australia needs to cut corporate tax after the US move

The Australian Treasurer Scott Morrison was on the wires earlier today, via Reuters, noting that Australia needs to cut corporate taxes after the US tax cut move.

Reports: China has temporarily lifted coal import restrictions

The latest chatter doing the rounds cites that there are some reports saying that China has temporarily lifted coal import restrictions.

BOJ December meeting: No change to monetary policy

The BoJ policy decision has been published, with the Central Bank communicating no change to its monetary policy.

Key Focus ahead

As we head towards the Christmas holiday break, the European calendar gets relatively lighter in terms of the economic releases, as the UK public sector net borrowing data remains the only macro event to be reported in the European session.

In contrast, the NA session remains eventful, with the key US final GDP, Philly Fed manufacturing index and jobless claims data due to be reported alongside the releases of the Canadian CPI and retails sales reports. Also, of note remains the Eurozone consumer confidence gauge that will be published post-US open.

EUR/USD: Corrective slide to extend as DXY re-takes 93.00

Having failed to sustain the rally above the 1.19 handle, the EUR/USD pair extended its overnight corrective slide into Asia, as investors seek to take profits off the table ahead of the key US macro releases due on the cards later today.

GBP/USD in a phase of downside consolidation ahead of UK data

The buyers continue to lurk just ahead of the midpoint of the 1.33 handle, leaving the GBP/USD pair in a consolidative channel, as we head towards the early European trading.

Separatists will likely win the Catalan elections - Rabobank

“On Dec 21st, Catalans will go to the ballot box to vote for a new regional government.”