In the view of the analysts at ASB Bank, the European Central Bank (ECB) is unlikely to adjust its monetary policy settings at its meeting due this Thursday at 1330 GMT. Key Quotes: “Widely expected to make no monetary policy changes and maintain its open-ended accommodative easing stance. The ECB could announce the launch of a comprehensive review of its monetary policy strategy at this meeting. The ECB review is expected to be wide-ranging - from the definition of price stability to the tools used to achieve the price stability objective.”

The yield on the Japanese 10-year government bond has risen to zero for the first time in nine months amid waning demand for global debt, according to Bloomberg. The benchmark yield is reporting a nine basis point gain on a month-to-date basis, having bottomed out at -0.30% in August. Bond prices are falling for the fourth consecutive month, pushing yields higher, as the Bank of Japan (BOJ) refrained from adding more easing measures. Also, the haven demand that the US and China may reach a partial trade deal.

USD/JPY seesaws around 61.8% Fibonacci retracement after bouncing off near-term key support. The immediate falling resistance line restricts the upside towards 23.6% Fibonacci retracement. A downside break below the support line can recall sub-108.00 territory. USD/JPY declines to 108.61 during the initial trading session on Tuesday. In doing so, the pair seesaws around 61.8% Fibonacci retracement of early November-December upside while staying above near-term key support-line. Although the pair’s failure to sustain the recent bounce indicates another drop to 108.40 figure comprising the said support line, its further downside becomes less expected amid the bullish signal from 12-bar Moving Average Convergence and Divergence (MACD). If at all prices slip below 108.40, mid-November lows near 108.20 could offer intermediate halts to the previous month low near 107.90. On the upside, pair’s rise past one-week-old falling trend line, at 108.80, can trigger fresh recovery to 109.20 wh..

RBI may be done cutting interest rates, swaps markets show. USD/INR has violated key support and found acceptance below crucial averages. The Reserve Bank of India (RBI) may be done with interest rate cuts, swaps markets indicate, having reduced borrowing costs by 135 basis points in February to October period. One-year interest-rate swaps surged 27 basis points to a four-month high of 5.29% on Dec. 6, following the central bank's status quo rate decision. Swaps essentially priced out the 25-40 basis points of reductions factored in before the rate decision. “The market is a bit taken aback by the RBI’s shock hold and that’s getting reflected in the swaps pricing-out any more rate cuts and market participants are now focusing on inflationary pressures and fiscal slippage,” said Eugene Leow, a fixed-income strategist in DBS Bank in Singapore, according to Bloomberg. The USD/INR pair fell to 70.88 on Monday to register the lowest level since Nov. 8. The pair also found ac..

Indonesia's Retail Sales grew by a whopping 3.6% on the year in October vs. a 0.7% rise seen in September, the latest survey conducted by Bank Indonesia (BI), the Indonesian central bank, released on Tuesday. The survey also predicted retail sales would rise 3.4% on an annual basis in October, Reuters reports. Retail sales grew at the fastest pace in five months and were mainly driven by automotive spare parts and food. The Indonesian Rupiah (IDR) is trading close to five-week highs vs. the US dollar near 13,995, as USD/IDR breached 14k handle earlier this Tuesday. At the press time, the spot trades at 14,007, modestly flat on the day.

Gold is moving in a sideways channel on the daily chart. The odds are stacked in favor of range breakdown. Gold is trading in a sideways manner around $1,461 per Oz in Asia. The yellow metal is trapped in a sideways channel, represented by trendlines connecting Nov. 12 and Nov. 26 lows and Nov. 20 and Dec. 4 highs. A channel breakdown, if confirmed, would imply a resumption of the sell-off from highs above $1,500 and open the doors for the 200-day average at $1,406. At press time, the lower edge the channel is seen at $1,454. A range breakdown looks likely, as the odds are stacked in favor of the bears. For instance, the 50- and 100-day moving averages. Also, markets have priced out prospects of a Federal Reserve rate cut in 2020. A range breakdown, however, would remain elusive if the planned US tariff hike on $160 billion of Chinese imports takes effect Sunday. That will likely boost haven demand for gold. Daily chart Trend: Neutral-to-bearish Technical levels

A senior Mexican official said late Monday that Mexico’s government has invited Canadian Deputy Prime Minister Chrystia Freeland to trade talks in Mexico, Reuters reports. US Trade Representative Lighthizer and White House adviser Jared Kushner are attending the trade meeting in Mexico this Tuesday. USMCA deal getting close to the line USD/CAD: Canadian Dollar gains on optimism over USMCA trade deal

Central banks are consuming a fifth of the global supply of gold as a part of the de-dollarisation strategy, according to Goldman Sachs Group Inc. Demand from central banks for gold is biggest since the Nixon era, eating up 20% of global supply,” Jeff Currie, the head of global commodities research at Goldman, said in a Bloomberg Television interview Monday. Key quote We like gold better than bonds because the bonds won’t reflect that de-dollarization.” Gold cannot fully replace government bonds in a portfolio, but the case to reallocate a portion of normal bond exposure to gold is as strong as ever. We still see upside in gold as late-cycle concerns and heightened political uncertainty will likely support investment demand” for bullion as a defensive asset. Gold is currently trading at $1,461 per Oz, representing a 6.16% drop from the six-year high of $1,557 registered on Sept. 4.

USD/CNH benefits from the recently upbeat China inflation data, extends the previous day’s pullback. China’s November month CPI and PPI both registered upbeat outcome. USD/CNH rises to 7.370 amid early Tuesday trading. That said, the quote recently benefited from China’s headlines inflation data. China’s Consumer Price Index (CPI) rose above 4.2% YoY forecast to 4.5% with a monthly data crossing 0.1% expected to 0.4%. Additionally, the Producer Price Index (PPI) also recovered more than -1.5% expected to -1.4%. With this, the pair extended Monday’s recovery despite no major positive trade headlines. Read details: China CPI a touch hotter than expected 4.5% vs 4.2% exp YoY On Monday, the quote took advantage of the broad US dollar (USD) pullback and the first uptick in import numbers while also ignoring the downbeat export data released over the weekend. The United States (US) is scheduled to levy fresh tariffs on Chinese goods and markets across the globe are worried about the sa..

Canadian dollar has recovered early losses on positive USMCA-related newsflow. USD/CAD is trading at the 100-day average support of 1.3230. Thursday's low is the level to beat for the bears. The bid tone around the Canadian dollar (CAD) has strengthened with reports stating that an agreement on the US-Mexico-Canada Agreement (USMCA) is close and there could be an official announcement of the same on Tuesday. The USD/CAD pair is currently trading at 1.3230, representing marginal losses on the day, having hit a high of 1.3245 in early Asia. Canadian Prime Minister Justin Trudeu’s office issued a statement at 1:03 GMT stating that Trudeau spoke with Trump about USMCA and the two are working out the final negotiations of the deal. Meanwhile, the US House and Means Committee Chairman Neal and the House Speaker Nancy Pelosi said that an official announcement is likely to come through on Tuesday. White House adviser Jared kushner also echoed similar sentiments soon before pre..

NZD/USD stops the previous day’s declines after China’s upbeat inflation data. An upside clearance of the adjacent resistance line can refresh a four-month high. Sellers await a downside break of the one-week-old rising channel. NZD/USD takes the bids to 0.6560 after China released November month inflation data on early Tuesday. Not only headlines Consumer Price Index (CPI) but the Producer Price Index (PPI) also beat market consensus while flashing 4.5% and -1.4% respective figures on a yearly basis. Read: China CPI a touch hotter than expected 4.5% vs 4.2% exp YoY With this, the kiwi pair aims to challenge the immediate falling resistance line, at 0.6565, in order to register a fresh high beyond August month’s top, flashed recently, around 0.6590. In doing so, 0.6600 and late-July top close to 0.6640 will be in the focus. Alternatively, pair’s declines below a two-week-old rising trend channel's support, near 0.6528, can trigger fresh selling towards 0.6490 and 61.8% Fibo..

US House Ways and Means Committee Chairman Neal says expects announcement on trade deal on Tuesday afternoon. Pelosi says she expects treaty to be set by Tuesday. In recent trade, there is news going around that a USMCA trade treaty is on the brink of being set as soon as today. This follows earlier announcements and some conflicting stories with regards to how close a deal was to being set. The fact that Nancy Pelosi, Speaker of the United States House of Representatives, is joining the camp speaks volumes. White House adviser Jared Kushner says we're making pretty good progress on USMCA trade deal. The Trump administration, Mexico and US Democrats on Monday had been moving closer to a deal for labour-related changes to a languishing North American trade pact that may soon allow it to proceed to a vote, as the window for passage this year quickly narrows. US Trade Representative, Robert Lighthizer, and White House senior adviser, Jared Kushner, as well as Canada's deput..