ForexLive Asia-Pacific FX news wrap: USD slide after FOMC extended in Asia time

• ECB meet today, +50bp rate hike “set in stone” – preview and cheat sheet
• CBA forecast one more 25bp RBA rate hike, terminal rate of 3.35% (there’s a ‘but’ though)
• Bank of England to hike by 50bp to 4% today (that’s consensus, with a risk of +25)
• BlackRock’s Rieder expects slow, steady Fed 25bp rate hikes, still work to do on inflation
• JPMorgan expect that Hong Kong shares will move higher in February
• BOJ Dep Gov Wakatabe says absolutely no change in BOJ commitment to continue easing
• Forecast for a FOMC March meeting 25bp hike, then on hold at 4.875% the the end of 2023
• PBOC sets USD/ CNY central rate at 6.7130 (vs. estimate at 6.7142)
• Berkshire Hathaway’s Charlie Munger says the US should ban crypto
• Australian data – December building approvals +18.5% m/m (expected +1.0%, prior -9.0%)
• China academic says US chip war on China a ‘nuclear weapon’, China should respond the same
• Hong Kong’s central bank follows the Fed and raises its base rate 25bp to 5%, as expected
• South Korea January CPI comes in way hotter, +0.8% m/m (expected +0.5%, prior +0.2%)
• EUR/USD on the rise, highest since April last year
• AUD/USD has hit an 8 month high after the FOMC & Powell. Loads of other tailwinds too.
• New Zealand data – December 2022 Building permits -7.2% m/m (prior +6.7%)
• FOMC responses – inflation still high, more +25bp hikes ahead,
• North Korea says it will take strong action against any US miliatry moves
• Trade ideas thread – Thursday, 2 February 2023
• The broader US indices close higher. Dow erases declines. Meta earnings mixed. Stock up.
• Forexlive Americas FX news wrap: Powell says “the disinflationary process has started”
• US 10 year yield moves closer to key 200 day moving average

After
the US cash stock market close META
reported
(see bullets above). Most notably the Zuck announced a
US$40bn buyback which
sent its shares soaring. NQ saw a benefit in evening trade
following., adding to the gains it had after the FOMC and Powell.

It
was a similar story across forex, with the USD mainly lower against
other majors. EUR, AUD, GBP, NZD, yen all higher in varying degrees.

USD/JPY
dropped to under 128.20 at one stage but recovered some ground after
Bank of Japan Deputy Governor Wakatabe reiterated the Bank’s
commitment to easy policy.

Some
of the energy was sapped from Asian markets as traders await the Bank
of England and European Central Bank policy decisions later
Thursday. There are previews above.

NASDAQ: