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The Greenback continued to bleed pips as a hurdle in the GOP’s tax reform concerned market players. Meanwhile, Kiwi jumped higher on a reassurance from NZ’s FinMin.

  • Business NZ manufacturing index up from 57.3 to 57.7 in November
  • Japan’s Tankan manufacturing index up from 22 to 25 in Q4 2017
  • Japan’s Tankan non-manufacturing index steady at 23 vs. increase to 24 expected
  • South Korea to impose Bitcoin measures starting January

Major Events/Reports:

Continued dollar weakness

With not a lot of data on the docket, Asian session forex traders tuned in to potential hurdles in the Republicans’ tax bill.

Word around is that Florida’s Marco Rubio would say “nay” if the bill’s proposed child tax credit refundability is not expanded. Under current law, a maximum child tax credit of $1,000 per eligible child under 17 is allowed on a portion of family earnings, but Rubio wants it “higher than $1,100.”

Remember that Republicans could lose up to two votes and then rely on VP Mike Pence in case of a tie. Pence has already delayed a trip to the Middle East in case he needs to step up.

Kiwi flies on FinMin remarks

In an interview with CNBC, New Zealand’s Finance Minister Grant Robertson shared that he’s “comfortable with the general trend” for Kiwi but also qualified that “specific targets for the exchange rate are not ones for the Finance Minister.

In general, the FinMin says he wants “a sustainable exchange rate that gives our exporters a fair go” and to “operate at a sustainable level,” the latter of which he thinks is already happening at the moment.

Major Market Mover(s):

NZD

Jurisdiction or not, the Finance Minister’s remarks on the Kiwi’s levels was enough to wake up forex bulls today.

NZD/USD is up by 24 pips (+0.34%) to .7007;
NZD/JPY is up by 19 pips (+0.24%) to 78.67;
EUR/NZD is down by 51 pips (-0.30%) to 1.6815, and
AUD/NZD is down by 34 pips (-0.31%) to 1.0943.

USD

The Greenback continued to lose pips against its major counterparts since traders were NOT impressed by Rubio possibly saying “no” to the tax bill (even though it will still pass if he does).

EUR/USD climbed by 4 pips (+0.03%) to 1.1778;
USD/JPY is down by 11 pips (-0.10%) to 112.29, and
USD/CHF is down by 8 pips (-0.08%) to .9885.

Watch Out For:

  • 10:00 am GMT: Euro Zone trade balance (24.4B EUR expected, 25.0B EUR previous)