ForexLive Asia Wrap for Friday 28Dec2012: You Guessed It – A Weaker Yen Again Today

Heavy data day out of Japan. The weakness of the data seems to further bolster Abe's hand on stimulus: Japan December Manufacturing PMI 45.0 (Nov. was 46.5) Japan November Unemployment Rate 4.1% (Market expected 4.2%) Japan November CPI -0.2% y/y (Market Expected -0.2%) Japan November CPI Ex-Fresh Food -0.1% y/y (Market expected -0.1%) Japan November CPI Ex-Fresh Food, Energy -0.5% y/y (Market expected -0.5%) Japan November Household Spending 0.2% y/y (Expected was +0.7%) Japan November Retail Trade figures 1.3% y/y (Market Expected +1.1%) Japan (Preliminary) November Industrial Production -1.7% m/m (Expected was -0.5%) Japan November Labour Average Monthly Cash Earnings -1.1% y/y (Market Expected -0.4%) China December MNI Business Sentiment Indicator 52.22 (Nov. was 53.75)   The Japanese Finance Minister, Aso, and BOJ Head Shirakawa met this morning for a courtesy call, apparently they did not discuss Monetary Policy The latest on the Fiscal Cliff is that Obama will be meeting with congressional leaders Reid, McConnell, Boehner and Pelosi at the White House on Friday at 2000GMT. The Washington Post is, however, reporting that McConnell is engaging directly in talks with the White House. USD/JPY hit a new high for this move again today, at 86.64 (and EUR/JPY to 114.45). Other currencies were bound in tight ranges.