News and data flow tailed off further during the day here in Asia as we approach the holiday period. Of note was data from the US Centers for Disea
News and data flow tailed off further during the day here in Asia as we approach the holiday period. Of note was data from the US Centers for Disease Control and Prevention (CDC) showing the dominance of the Omicron variant in the US (as of December 18 but released on the 20th, US time); now accounting for upwards of 73% of cases. This is a stunningly rapid rise, it was in the single digits only days ago.
Locally in the region we had December meeting minutes from the Reserve Bank of Australia. The minutes did not add a lot of new information as Governor Lowe had spoken since the Dec. Meeting. The minutes outlined the 3 options on RBA bond-buying (QE) that Lowe covered in his speech, links here:
but in a nutshell these are:
- reduce bond buying in February and end in May
- end in February
- reduce in February, review again in May
That first option is consistent with the RBA’s central forecasts. Interestingly the latest calls from Australia’s ‘big four’ banks have three tipping option 2 above (an end to bond purchases in Feb.) while one (Westpac) are nominating the first option (end in May).
Scanning across major forex rates you’ll see little net change for the session.
US equity index futures gained on Globex.
New Zealand postponed its international reopening and shortened the re commended period between the second dose of COVID-19 vaccine and the booster short (to 4 months from 6). NZD/USD has added a few ticks:
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