Forex Today: Antipodeans drop, USD pops in Asia, UK PMI eyed

Still a day to go for the full markets to return in Asia, leaving most majors in tight trading ranges, except for the Antipodeans. Both the OZ currencies slipped on the back of a correction prompted by a minor recovery in the US dollar across the board while the USD/JPY remained better bid near 112.30 levels amid higher Asian equities and stabilizing oil prices.

Main topics in Asia

N. Korea to open border hotline between two Koreas to discuss inter-Korean dialogue

A North Korean official is reported by the local media, as saying that the North’s leader Kim Jong Un gave the order to open border hotline between two Koreas at 0630 GMT to discuss inter-Korean dialogue.

NZD/USD sold-off near 200-DMA, slides below 0.7100

The NZD/USD pair remains well offered below the 0.71 handle, as the bears extend the overnight correction from multi-month tops into Asia.   

Sources: S. Korea to consider steps to boost capital outflows if Won rally continues - RTRS

Reuters quoted three people familiar with the matter, citing that South Korea will consider measures to boost capital outflows if the Won continues to increase rapidly.

Gold eases-off 3-1/2 month tops as USD rebounds

The bullish momentum seen around Gold futures on Comex lost traction over the last hours, as the USD bulls jumped back on the bids after nursing losses for ten consecutive trading sessions. 

Key Focus ahead

There is little of note for the EUR, GBP traders today, as the European calendar remains fairly quiet, except for the second-tier German unemployment change numbers and the UK construction PMI report. The UK construction sector activity is seen deteriorating to 52.8 in December versus a 53.1 reading booked in November.

In the NA session, the US ISM manufacturing PMI and the Dec Fed meeting minutes will be reported among other second-liner releases that include the construction spending and ISM manufacturing prices.

EUR/USD: Further upside still in play ahead of US ISM, Fed minutes?

The overnight recovery in the EUR/USD pair faltered in Asia, as sellers continued to lurk near 1.2065 region amid a pause in the USD sell-off across the board.

GBP/USD eyes Sept 2017 highs ahead of UK construction PMI

The bulls weakened their grip in mid-Asia, allowing a brief phase of consolidation in the GBP/USD pair near four-month tops of 1.3605, as investors gear up for the UK construction PMI release.

FOMC December meeting minutes preview – Barclays

Barclays Research Team published its brief preview of what to expect from the upcoming FOMC Dec meeting minutes that will be released at 1900 GMT today.

PBOC seen raising money market rates three times in 2018 – Bloomberg Survey

The results of the latest Bloomberg survey of 31 analysts showed that a majority of them expect the PBOC to hike the reverse repo rates by 5 bps three times this year.