- Foxconn pivot from Apple - readying to supply cars, chips, batteries to global automakers
- More on Tesla - China chief to take charge of US factories, US & Europe sales operations
- More on the "EU offers free COVID vaccines to China to help curb outbreak" story
- China PMI data: Caixin Manufacturing PMI December 49.0 (previous 49.4)
- Natwest terminal rate forecasts: Federal Reserve 5% (by mid-2023) & ECB 2.25% (by Q1-2023)
- PBOC sets USD/ CNY reference rate for today at 6.9475 (vs. estimate at 6.9477)
- Most analysts expect 2 RBA rate hikes in 2023, cuts from March 24. Goldman Sachs: "Nah"
- UK news - millions of low income households to receive 900GBP cost of living payment
- ICYMI - ECB's Nagel said " we need to take further monetary policy action"
- Singapore data: Q4 GDP flash estimate is +0.2% q/q and +2.2% y/y. The y/y is a beat.
- Tesla's Q4 2022 deliveries fell short of Wall Street estimates but up from Q4 a year ago
- Australia December manufacturing PMI from Judo Bank / Markit is 50.2 (prior 51.3)
- Australia December manufacturing PMI from AiG is an ugly 44.7 (prior 49.6)
- China Beige Book says China economy dropped significantly in Q4, Q1 recovery unlikely
- Trade ideas thread - Tuesday, 3 January 2023
- Economic calendar Asia,Tuesday, 3 January 2023: Another December manufacturing China PMI
ICYMI, over the new year break was a story from Japan’s Nikkei:
The story played a role in sending the yen higher during the session. But it wasn’t one-way traffic.
Early in the session USD/JPY moved higher in a short time, rising to just shy of 131.40 in mere minutes. A lack of liquidity played a role, with Japanese and New Zealand markets closed for a holiday again. It was too early for most of Singapore and Hong Kong to have entered the forex market.
As more centres opened USD/JPY dropped away, and its not far from its session low as I update now, down more than 160 points from its early high. Quite the move for the Asian timezone.
USD/CAD had its own swings. The initial move for it was from under 1.3560 to just short of 1.3620 before dropping back to lows under 1.3550, where it is as I post. GBP, AUD and NZD traded similarly against the US dollar, lower initially before rallying sharply.
The Financial Times reported the EU is to send COVID vaccines to China for free, which helped the risk mood improve in the session. Chinese stocks (mainland and Hong Kong) opened lower but they have recovered to be positive for the session. The China December private survey (Caixin/Markit) manufacturing PMI remained in contraction for a 5th straight month. Some of the internals were more positive though, see bullets above.
Gold is up on the session.
