ForexLive Asia Wrap Tuesday 18Dec2012: BOJ Head calls on PM-elect for meeting

LDP planning a supplementary budget ahead of regular budget, with more fiscal stimulus BOJ Head Shirakawa visited Abe at LDP headquarters today. There is increasing pressure from Abe for the BOJ to adopt a 2% inflation target sooner rather than later At the conclusion of the (very brief - I clocked it at 17 minutes!) meeting Shirakawa said there was no discussion of monetary policy. He refused to comment on monetary policy due to a 'black-out period' ahead of tomorrow's BOJ meeting The Conference Board released its leading Economic Indicator for Australia today; +0.2% for October, September was revised down from -0.3% to -0.4% The RBA released minutes from it Dec. 4 Policy Board meeting - they indicated the rate cut call was indeed 'line-ball' There was progress on Fiscal Cliff negotiations - Obama offering to extend current tax rates up to incomes of $400,000 (more; and BBG article, NY Times article) China November FDI came in at -5.4% y/y (vs. -3.1% expected) Reports from an economist associated with China's NDRC that there is a lot of room for the Reserve Ratio Requirement to fall in 2013 The Yen lost ground from its Europe/NY range, trading to 84.08 (USD/JPY) and 110.75 (EUR/JPY) on the back of continued pressure from Abe on the BOJ to pursue a 2% inflation goal, and plans from the incoming government for more fiscal stimulus. EUR/USD found a little strength on continued positive signs of Fiscal Cliff negotiations, but running into offers at the NY highs above 1.3175. AUD, NZD and CAD all traded in very narrow ranges. Cable too, had a narrow range but showed a bias to the upside over the day.