USD/JPY pulls back from 200-hour EMA, stays within the nearby bullish formation. 61.8% Fibonacci retracement can please buyers, November low may gain sellers’ attention after the channel’s break. USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 by the press time of early Wednesday. With this, sellers will look for entry below the said channel’s support line, at 108.55. In doing so, 108.00 and November month low near 107.90 will be in focus. On the flip side, a sustained break of 200-bar EMA level of 108.80 needs validation from the channel’s resistance, at 108.85, to rise towards December 05 high of 109.00. Further, 61.8% Fibonacci retracement of the current month declines, at 109.23, holds the key to pair’s additional upside beyond 109.00. Though, May-end top near 109.93 and 110.00 could keep the pair Bulls in check beyond 109.00. USD/JPY hou..

The Goldman Sachs analysts are out with a sneak peek at what to expect from Wednesday FOMC monetary policy decision due to be announced at 1900 GMT. Key Quotes: “Base case is for the dot plot update to show monetary policy on hold in 2020. But then with a leg each side of the fence.: There could be either a dovish or hawkish surprise Hawkish if more FOMC participants project one rate hike in 2020 or two hikes in 2022. Dovish if the median long-run dot declines from September's 2.5% level or participants see higher inflation as a prerequisite for the next rate hike Beyond the December meeting, we see a high bar for policy moves in either direction.”

GBP/USD's weekly candle is indicating buyer exhaustion. The pair may consolidate in a 100-pip range in Europe. GBP/USD is currently trading largely unchanged on the week at 1.3136, having hit a high of 1.3215 on Tuesday. The long upper wick of the weekly candle, as represented by the pullback from 1.3215 to 1.3135, is signaling bullish exhaustion following a near 90-degree rally from lows near 1.1960 registered at the end of August. Also, it represents a failure on the part of the GBP bulls to keep the pair above the resistance of the trendline connecting July 2014 and April 2018 highs. The pair may consolidate largely in 1.31-1.32 range during the day ahead. The spot had dropped to 1.3107 in early Asia on a key poll showing a sharp drop in Prime Minister Boris Johnson’s lead in Britain’s general election. Britons are set to vote on Dec. 12. Weekly chart Trend: Bullish exhaustion Technical levels

The Nikkei Asian Review quoted sources familiar with the Japanese government thinking, as saying that Japan’s government is expected estimate that tax revenue will undershoot its initial forecast by around JPY 2.3-2.5 trillion yen in the current fiscal year (FY) to March 2020. The sources said: The government will issue additional deficit-covering bonds worth around 2 trillion yen in the current fiscal year to make up for a tax revenue shortfall. Meanwhile, USD/JPY keeps its range around 108.70, lacking a clear directional bias amid broad-based US dollar and negative S&P 500 futures, as markets await the Fed decision and any clarity on the US tariffs hike for the next move.

Analysts at Australia and New Zealand Banking Group (ANZ) express their take on New Zealand’s Mid-year Economic and Fiscal Update released earlier on Wednesday. Key Quotes: “As previously signalled, the Government intends to increase infrastructure spending over the next few years. An extra $12 billion of infrastructure spending has been added to the fiscal outlook, and that will support growth over the medium term. However, given the delays typical with infrastructure spending, we doubt they’ll be able to implement this as quickly as they hope. We await further announcements regarding the specific projects to be funded. The NZD saw a modest rally following the release, justifying the markets bias on the currency from the week prior. The 10-year NZ Government bond yield however fell around 3.5bps as the promise of additional spending did not eventuate in a materially larger government bond issuance programme – as had been anticipated by markets following the announcement of additi..

Ratings agency Standard and Poor's (S&P) is out on the wires stating that the New Zealand government's decision to boost fiscal spending won't have a negative impact on the country's credit rating, which currently stands at AA with a positive outlook. New Zealand's Finance Minister Grant Robertson on Wednesday announced an NZD 12 billion hike in fiscal spending.

WTI is under pressure, likely due to surprise US inventory buildup. A close below Tuesday's low would confirm a short-term bearish reversal. WTI oil prices are flashing red in the Asian session with buyers sitting on the fence, possibly due to the surprise inventory buildup in the US. At press time, a barrel of WTI is changing hands at $58.90, representing a 0.50% drop on the day. The American Petroleum Institute (API) on Tuesday estimated an inventory build-up of 1.41 million barrels for the week ended Dec.4 compared to expectations of a 2.763-million-barrel drop in inventory. The inventory report, which applied brakes to the oil rally near $59.50 in the overnight trade, is likely keeping the black gold on the defensive at press time. While the benchmark is currently reporting losses on the day, it is still up more than 6.5% on a month-to-date basis. Oil prices are expected to remain bid in 2020, courtesy of the recent decision by the OPEC and Russia to deepen production ..

USD/IDR recovers after registering a bullish candlestick formation. 23.6% of Fibonacci retracement can restrict immediate upside. July/September lows will be the key to watch during further declines. USD/IDR takes the bids to 14,019 while extending the previous day’s recovery on early Wednesday. Doji on the daily (D1) chart favors the pair’s further increase with 23.6% Fibonacci retracement of August-September declines, near 14,050, acting as immediate resistance. It’s worth mentioning that 200-day Exponential Moving Average (EMA) and 38.2% Fibonacci retracement around 14,150/51 will grab major attention, a break of which could propel prices to mid-August levels surrounding 14,350. Alternatively, pair’s failure to justify the bullish candlestick formation needs to flash a daily close below Tuesday’s low of 13,968 to extend falls to 13,890/80 region comprising lows marked in July and September. USD/IDR daily chart Trend: Recovery expected

The Asian Development Bank (ADB), said in its latest report released on Wednesday, it has downgraded its growth forecasts for developing Asia this year and the next, as a weaker outlook for China and India indicated softer economic activity elsewhere in the region. Key Quotes: “The bank trimmed its growth forecast for developing Asia to 5.2% in 2019 and 2020, the Manila-based lender said in an updated annual outlook report, from 5.4% and 5.5% previously. It cut its growth estimates for China for this year and the next to 6.1% and 5.8%, respectively, from the 6.2% and 6.0% forecasts announced in September, on the U.S.-Sino trade tensions and as higher prices of pork cut into consumer spending. The ADB also lowered its forecast for South Asia's largest economy India for fiscal years 2019 and 2020 to 5.1% and 6.5%, from its September estimates of 6.5% and 7.2%, due to liquidity strains on its non-banking finance companies and slow job growth. Developing Asia faces rising food c..

According to the latest report published by the US-based Moody’s Investors Service, sovereign credit quality in Australia, New Zealand, Korea, Singapore And Japan to remain strong in 2020. There is nothing further reported on the same.

Gold fails to benefit from UK election polls and doubts over the US-China trade deal. Traders turn cautious ahead of the FOMC. US CPI adds burden to market watchers, British election, trade headlines will dominate the Fed. Gold prices register a mild loss of -0.05% while taking rounds to $1,463 during early Wednesday. The yellow metal seems to have lacked buying ahead of the key monetary policy meeting by the US Federal Reserve (Fed). The Bullion struggles to justify worrisome polls concerning the United Kingdom’s (UK) election on December 12. The YouGov MRP poll now shows a close call of a hung parliament versus a clear majority for the ruling Conservatives Party during its previous release on November 27. Also raising doubts on the metal’s pullback is looming uncertainty over the phase-one deal between the United States (US) and China. The recent comments from White House Adviser Peter Navarro mention that it's up to the Chinese as to whether to get a deal. The same follows..