Forex news for Asia trading Thursday 13 December 2018

USD/JPY traded higher today, back to test 113.50 (its just under there as I post) on what appear to be positive stories on trade (China buying US soybeans) and perhaps also the vote for stability (of a sort) in the UK with PM May retaining her position. 'Risk' currencies, though, did little. For example, AUD/USD traded 15 or so points higher only, NZD up a touch also (more on the NZD below). EUR and GBP are net little changed.

The news on UK PM May hit late NY, Greg's US time wrap has coverage. GBP/USD popped above 1.2660, dropped back toward 1.2600 and then settled sideways in Asia, hourly ranges diminishing while we await the next set of developments on Brexit.

The New Zealand government released its half-year Fiscal and Economic Update today, cutting the expected size of surpluses and also its GDP forecast. NZD/USD dropped a few points on the release only. While expected surpluses are lower, they are still surpluses and ditto for the GDP forecast, lower but still a reasonable 2.9%.

From China today the PBOC revalued the onshore yuan a little higher at the daily mid-rate setting. Eyes are on the yuan as a guide to how well trade negotiations are going with the US; a stronger yuan is thought to indicate negotiations are going well, while a weaker not so much. The 90-day time horizon for talk conclusions looks to be an impossible deadline, but who's to say this will not be extended? Stocks fared well, the Shanghai Composite up 1.6% as I update.

The China response to Canada's arrest of Huawei CFO Meng Wanzhou continued today, with confirmation from state media of the detention of a second Canadian in China on the same "engaging in activities that endangered China's national security" charge. USD/CAD is not a lot changed on the session.

Still to come: