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The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 7.0779 compared to the previous day’s fix of 7.0796 and 7.0733 Reuters estimate.

South Korea BoK Interest Rate Decision meets expectations (2.5%)

The USD/JPY pair struggles to capitalize on the previous day’s bounce from the 155.65 area, or a one-week low, and meets with a fresh supply during the Asian session on Thursday.

Bank of Korea leaves its base rate on hold at 2.5% as widely expected (by 32 of 36 economists polled by Reuters)

The weak won has cut away scope scope for further easing in SK. Also of note for policy setters at the bank are how government steps to cool Seoul’s property market will pan out.

• BoK expects 2025 GDP growth at 1.0%.

• BoK expects 2025 inflation at 2.1%.

• BoK expects 2026 GDP growth at 1.8%.

• BoK expects 2027 GDP growth at 1.9%.

• BoK expects 2026 inflation at 2.1%.

• BoK expects 2027 inflation at 2.0%.

BoK Governor Rhee Chang-yong will hold a press conference at 0210 GMT

This article was written by Eamonn Sheridan at investinglive.com.

AustralianQ3 Private Capital Expenditure

• Building capex rose 2.1% q/q (previous +0.2%).

• Plant and machinery capex jumped 11.5% q/q (previous +0.3%)

  • takes this to a record high for spending on machinery and equipment

• New capital expenditure increased 6.4% q/q (forecast 0.5%, previous 0.2%)

• 6.4% is the highest since 2012

  • Australian Bureau of Statistics says its due to a big jump in spending on data centres, and on air transport investment

Estimate 4 of 2025/26 investment plans upgraded 9.4% to $191bn

This article was written by Eamonn Sheridan at investinglive.com.

Australia Private Capital Expenditure above forecasts (0.5%) in 3Q: Actual (6.4%)

People’s Bank of China USD/CNY reference rate is due around 0115 GMT.

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day’s trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan’s value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency’s value.

This article was written by Eamonn Sheridan at investinglive.com.

more to come

This article was written by Eamonn Sheridan at investinglive.com.

GBP/USD accelerated into a fifth straight winning session on Wednesday, gaining another 0.55% on the day and pushing through the 1.3200 handle.

New Zealand November business confidence 67.1%, the highest in 11 years

• prior 58.1%

Business activity 53.1%

• prior 44.6%

New Zealand posting solid numbers yet again.

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Earlier:

• RBNZ’s Hawkesby says policy now stimulatory but warns on global independence risks
• New Zealand Q3 retail sales show huge jump, much improved from Q2

The news from yesterday has lifted the NZD:

• investingLive Asia-Pacific FX news wrap: AUD up (high CPI), NZD up (rate cut), JPY up (BoJ
• investingLive Americas FX news wrap 26 Nov:NZD soars on Hawkish Cut/GBP rallies on budget

This article was written by Eamonn Sheridan at investinglive.com.