ForexLive Asia-Pacific FX news wrap: PBoC and NDRC with China-supportive comments

• Washington Post reports that Biden will block sale of US Steel to Japanese buyer

• Fed’s Daly and Kugler are speaking on Saturday, January 4, 2025 – topic is monetary policy
• China state planner official says to boost employment, income growth, and social security
• China’s state planner official says ample room for macro policies in 2025
• China’s state planner is holding a briefing
• Attempt to arrest South Korean President Yoon Seok-yoel is at a stalemate
• European Central Bank Chief Economist Philip Lane is speaking on Friday and on Saturday
• Biden to announce Friday on whether he’ll approve Japanese acquisition of U.S. Steel
• PBOC sets USD/ CNY central rate at 7.1878 (vs. estimate at 7.2868)
• AUD and NZD pop higher – prospect of PBoC interest rate cuts supportive
• PBOC says interest rate cuts are likely in 2025 “at an appropriate time”
• RBC forecasts a much weaker yuan in 2025, project USD/CNY to 7.55 by year end
• Arrest of South Korean President Yoon being attempted, mkt stabilization measures promised
• UK fin min Reeves warns to consider cuts to front line services
• Central bank speakers swing into action from Friday 03 January – Fed’s Barkin
• HSBC says the hawkish Fed pivot has triggered the “Danger Zone” across multiple assets
• Forexlive Americas FX news wrap: The US dollar picks up where it left off
• Trade ideas thread – Friday, 3 January, insightful charts, technical analysis, ideas

China
took centre stage again during the Asia session, with Japanese
markets closed for another holiday.

The
Financial Times reported that the People’s Bank of China says an
interest rate cut this year is likely at an “appropriate time”.
Note that the main policy rate in China is the OMO reverse repo. This
is currently at 1.5% and its this the PBoC says it’ll be cutting.

AUD/USD
and NZD/USD traded a little higher on this news.

There
was follow-up from China, with the State Planner (the National
Development and Reform Commission of the People’s Republic of China
(NDRC) is the state planner) holding a briefing to outline further
supportive measures to come this year. More on the PBoC and NDRC in
the points above. Chinese
equities found some support on the news.

From
South Korea we had news that police efforts to arrest impeached
President Yoon Suk Yeol were blocked by his presidential security. The stand off continues. South Korean equities rose …

Major
USD FX rates traded in subdued ranges. USD/JPY has fallen away a
little, circa 157.25 or so as I update.

Gold
continued to tick higher, as did oil.

This article was written by Eamonn Sheridan at www.forexlive.com.