Asia Roundup: Dollar soft ahead of US GDP data release, Asian shares climb, Gold hits record high, Oil steady -December 23rd,2025

Market Roundup

• New Zealand M3 Money Supply  (Nov)443.6B,   442.3B previous

•Japan BoJ Core CPI (YoY) 2.2%,2.2% forecast,2.2% previous

Looking Ahead Economic Data (GMT) 

•07:00 German Import Price Index (YoY) (Nov) -1.4%

•08:00 Spanish GDP (QoQ) (Q3) 0.6% forecast,0.8% previous

•08:00 Spanish GDP (YoY) (Q3)2.8%forecast, 3.1% previous

•10:30 Belgium CPI (YoY) (Dec) 2.40% previous

•10:30 Belgium CPI (MoM) (Dec) 0.56% previous

Looking Ahead Events And Other Releases (GMT)  

•No Events Ahead

Currency Forecast

EUR/USD : The euro edged higher on Tuesday as the U.S. dollar softened ahead of the release of third-quarter U.S. GDP data. Investor attention is firmly on the GDP figures due later in the session, though the data delayed by the 43-day government shutdown is widely seen as dated and unlikely to significantly influence markets.The release is expected to reinforce the view of a K-shaped U.S. economy, where higher-income households continue to perform well while middle- and lower-income groups remain under pressure. GDP is forecast to have expanded at a 3.3% annualized rate in the third quarter, according to a Reuters poll, easing from 3.8% growth in Q2. The dollar index  , which measures the U.S. currency against six rivals, slid 0.2% to98.061 on Tuesday, extending losses into a second day after dropping 0.5% on Monday. Immediate resistance can be seen at 1.1793(23.6%fib), an upside break can trigger rise towards 1.1828(Higher BB).On the downside, immediate support is seen at 1.1731(38.2%fib), a break below could take the pair towards 1.1680(50%fib).

GBP/USD:  Sterling strengthened against the dollar on Tuesday as broad-based dollar weakness supported risk-linked currencies. Market expectations for the Federal Reserve have turned dovish, with traders pricing in two potential rate cuts in 2026. This softer outlook for the U.S. dollar has underpinned GBP gains.The Bank of England is unlikely to rush into further rate cuts, given inflation remains significantly above its 2% target. This suggests the BoE may maintain a tighter policy stance relative to the Fed.The contrast between a potentially easing Fed and a cautious BoE continues to favor GBP/USD.  Immediate resistance can be seen at 1.3499(23.6%fib), an upside break can trigger rise towards 1.3529(Higher BB).On the downside, immediate support is seen at 1.3405 (38.2%fib), a break below could take the pair towards 1.3338(50%fib).

AUD/USD: The Australian dollar extended gains on Tuesday after minutes from the Reserve Bank of Australia’s (RBA) latest meeting indicated readiness to raise interest rates to contain inflation. The December policy meeting minutes revealed that policymakers were considering a potential rate increase next year to keep inflation in check, following unexpectedly strong consumer price readings in October and the third quarter.The RBA noted that the labor market remains somewhat tight and the economy is likely operating above capacity, with elevated capacity utilization pointing to ongoing supply constraints. Officials added that keeping the cash rate on hold next year would require confidence that financial conditions are sufficiently restrictive and that much of the recent inflation rise is temporary. Immediate resistance can be seen at 0.6695(23.6%fib), an upside break can trigger rise towards 0.6726(Higher BB).On the downside, immediate support is seen at 0.6654(Daily low), a break below could take the pair towards 0.6609(38.2%fib)

USD/JPY: The U.S. dollar slipped on Tuesday as the Japanese yen strengthened, following warnings from officials about sharp and one-sided currency fluctuations, which fueled speculation of potential intervention. Japan’s top currency diplomat, Atsushi Mimura, said on Monday that authorities would take “appropriate” action against excessive foreign exchange moves, signaling that intervention remains possible after last week’s central bank meeting triggered renewed yen weakness.On Tuesday, Finance Ministry official Katayama added that Japan can act freely against excessive yen movements, marking the strongest indication yet that authorities are prepared to step in to curb rapid currency depreciation. Japanese officials are increasingly concerned about the weak yen, which is raising import costs, fueling inflation, and eroding household purchasing power. Immediate resistance can be seen at 157.80(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at  155.91 (SMA 20)  a break below could take the pair towards 155.61 (38.2%fib).

Equities Recap

Asian shares climbed on Tuesday, supported by gains in precious metals, as investors engaged in momentum buying ahead of the festive holidays.

China’s A50  up 0.85%,Japan’s Nikkei 225 was up 0.06%,South Korea’s KOSPI was up  0.28%

Commodities Recap

Oil prices held steady on Tuesday following a more than 2% gain in the previous session, as the U.S. signaled it may sell seized Venezuelan crude.

Brent crude futures edged lower by 6 cents, or 0.1%, to $62.01 per barrel by 0440 GMT. U.S. West Texas Intermediate (WTI) crude slipped 9 cents, or 0.16%, to $57.92.

Gold surged to a record high on Tuesday, nearing the $4,500-per-ounce mark, as investors sought the safe-haven metal amid U.S.-Venezuela tensions.

Spot gold   was up 0.8% at $4,479.18 per ounce, as of 0527 GMT, after hitting a record $4,497.55 earlier in the day. U.S. gold futures  for February delivery jumped 1% to $4,511.50.