ForexLive Asia-Pacific FX news wrap: Gold jumped

• Federal Reserve Bank of Chicago President Austan Goolsbee is speaking again on Monday
• Goldman Sachs have reiterated their gold target of $3,000 an ounce by December 2025
• Chinese city of Shanghai said it would reduce some taxes on real estate transactions
• European Central Bank President Lagarde speaking Monday, chief economist Lane also + more
• Goldman Sachs downgrade Hong Kong stocks to underweight
• China Securities Regulatory Commission to expand numbr of stock eligible for Stock Connect
• Goldman Sachs expects a 50bp Reserve Bank of New Zealand rate cut this month
• Got gold? Jumps back above US$2590
• Bank Japan Gov Ueda – Driver of Japan’s inflation shifting towards rise in domestic wages.
• PBOC sets USD/ CNY reference rate for today at 7.1907 (vs. estimate at 7.2312)
• USD/JPY volatile on Bank of Japan Governor Ueda speech
• Bank of Japan Governor Ueda says economy recovering moderately, some weak signs
• Bank of Japan Governor Ueda about to speak – rate hike clues incoming?
• Goldman Sachs lower its forecast for Australia’s economic growth in 2025 on Trump vs China
• Singapore Non-oil Domestic Exports (NODX) October 2024: -7.4% m/m vs. +2.3% expected
• Japan Machinery orders for September 2024: -0.7% m/m (expected +1.9%)
• South Korea official says stock mkt decline a little excessive, will stabilize as needed
• BlackRock CIO predicts 25bp FOMC interest rate cut in December, & 2 or more in 2025
• Potential euro recovery: UBS forecast for EUR/USD in 2025
• MUFG wary of an European Central Bank rate cut slowdown – EUR supportive
• New Zealand Q3 PPI Output +1.5% q/q (expected 0.9%) and inputs +1.9% q/q (expected 1.0%)
• New Zealand services PMI (October) 46.0 (prior 45.7)
• US authorizes Ukraine to use long-range US weapons to strike inside Russia
• Trade ideas thread – Monday, 18 November, insightful charts, technical analysis, ideas
• Monday morning open levels – indicative forex prices – 18 November 2024
• Is META stock a Buy or Sell?
• Weekly Market Outlook (18-22 November)
• Newsquawk Week Ahead: UK data; RBA Minutes; Japanese CPI
• Fed’s Goolsbee says rates will be a lot lower “as long we keep making progress toward” 2%
• Credit Agricole: 2025 will not be a repeat of the USD’s 2018 rally
• Forexlive Americas FX news wrap: The yen rebounds strongly as US retail sales eyed

Bank
of Japan Governor Ueda spoke on Monday, to business people in Nagoya.
Ueda made extensive comments without giving too much away on a
potential rate hike at the Bank’s next meeting on December 18 and
19. Ueda said that the Bank will continue to raise its policy rate
and adjust its degree of monetary support if the economy and prices
move in line with its forecasts. That is, data dependency. In his
further comments, though, Ueda referred to continuing wage rises and
that the driver of Japan’s inflation shifting away from cost-push
factors towards rise in domestic wages. This emphasis seems to me to
indicate he views conditions lining up for ongoing hikes rather than
not.

The
yen reaction was an immediate decline, with USD/JPY popping above
155.00, albeit not for too long. As I post its back around the middle
of the session range circa 154.55.

Prior
to Ueda were data on core machinery orders out of Japan. These showed
a disappointing miss.

Gold
was a decent mover on the day, jumping above US$2595 at one stage.
Finding a smoking gun catalyst has been elusive, with much commentary
around the ongong escalation in Ukraine:

• Russia
  escalated with its influx of troops from North Korea
• And
  now the US authorization of the use of long-range weapons to hit
  targets inside of Russia

There
was some speculation of Chinese buying (PBoC) returning to market.

From
China today we saw moves from Shanghai to support its local property
market (see bullets above).

Chinese equities are positive on the day. US equity index futures (ES and NQ) are higher,

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