Forex news for early Asia-Pacific trade on December 9, 2020:
- China November CPI -0.5% y/y vs 0.0% expected
- Japan October core machine orders +2.8% y/y vs -11.2% expected
- Mnuchin presented $916B stimulus proposal to Pelosi today
- McCarthy: McConnell told White House he would support $600 stimulus checks
- Pelosi and Schumer say White House stimulus plan unacceptable
- SoftBank shares rise on talk of 'slow-burn' go-private move
- PBOC sets yuan midpoint at 6.5311 vs 6.5322 prior
- Australia December Westpac consumer sentiment index 112.0 vs 107.7 prior
- Irish foreign min: Irish border issue settled
- New Zealand Q3 manufacturing activity +10.0% vs -11.9% prior
Markets:
- Gold down $10 to $1859
- Nikkei up 1.1%
- AUD leads, USD lags
The risk mood has improved throughout the trading day despite US Democratic leaders turning down a fresh stimulus proposal from the White House.
Japanese equities have led the charge but it's a broad move throughout Asia that's spilled over into the commodity currencies, all of which are decently higher.
There's also some element of US dollar selling. Even cable is taking advantage despite the huge risks around Boris Johnson's trip to Brussels later today.
The euro has taken back its declines from US trading in a quarter-cent rally to 1.2130.
Another positive factor was the strong data from Japan with machine orders blowing away expectations. The consumer sentiment numbers from Australia were also upbeat.
In China, CPI was very soft in part due to a drop in food prices. The fall into y/y deflation is the first since 2009 but the market may be signaling that stimulus could be back on the menu. USD/CNY took out 6.5 for the first time since 2018.
