Morning wrap (02.01.2023)

• Asian indices were mixed in holiday-thinned trade on Monday, with most major bourses in the region remaining shut for the New Year's Day. South Korean stocks fell over 0.40%, while other major markets including Australia, Japan, China remain closed for the holidays.

• DAX futures point to a lower opening of the European cash session today

• US markets ended a dismal year on a sour note and will be shut today

• BOJ is considering raising its inflation outlook, according to Nikkei media

• IMF anticipates that a third of global economy will be in recession this year, however US economy is the most resilient and may avoid recession

• The S&P Global South Korea Manufacturing PMI returned to 48.2 in December from 49 in November, remaining contractionary for the sixth straight month  

• Exports from South Korea dropped 9.5% YoY to $54.99 billion in December, after a 14% plunge in the previous month, and compared with analysts’ estimates of a 10.1% fall.

• Imports to South Korea dropped by 2.4% YoY to $59.68 billion in December, well above market expectations of a 0.6% fall and after a 2.7% growth in November

• China official PMIs also moved lower: Manufacturing 47.0 (previous 48.0) & Services 41.6 (previous 46.7)

• Major cryptocurrencies trade higher today. Bitcoin gains 0.35%, while Ethereum rose 0.2% 

• Precious metals and energy commodities markets will be closed today

• JPY and CHF are the best performing major currencies while NZD and AUD lag the most

The AUDUSD pair managed to break above 200 SMA (red line) at the end of the year and as long as price sits above, retest of the key resistance at 0.6880 cannot be ruled out. Source: xStation5