Asia Roundup: Dollar holds steady ahead of the closely watched Fed outcome ,Asian shares subdued ,Gold little changed, Oil steady -December 10th,2025

Market Roundup

• China CPI (YoY) (Nov) 0.7%, 0.7%forecast,0.2% previous           

• China CPI (MoM) (Nov) -0.1%,   0.2% forecast,0.2% previous                      

• China PPI (YoY) (Nov) -2.2%,-2.0% forecast,-2.1% previous                                      

Looking Ahead Economic Data (GMT)  

•Italian Industrial Production (MoM) (Oct) -0.3%forecast,2.8% previous               

•Italian Industrial Production (YoY) (Oct) 0.2% forecast,1.5% previous                    

•Greek Industrial Production (YoY) (Oct)  6.8% previous                 

•Italian 12-Month BOT Auction  2.063% previous             

Looking Ahead Events And Other Releases (GMT)  

•No Events Ahead

Currency Summaries

EUR/USD : The euro was little changed against dollar on Wednesday  ahead of a key Federal Reserve policy decision later in the day, where investors are wagering on a cut in what is likely to be one of the most fractious meetings in years.Investors have been dialling back on expectations of rate cuts in 2026 on lingering inflation concerns and expectations of a more resilient U.S. economy.Data on Tuesday showed U.S. job openings increased marginally in October after surging in September.White House economic adviser Kevin Hassett, the front-runner to be the Federal Reserve's next chair, told the WSJ CEO Council on Tuesday there is "plenty of room" to cut interest rates further, though he added that if inflation rises the calculation may change. Immediate resistance can be seen at 1.1674(Daily high), an upside break can trigger rise towards 1.1692(Higher BB).On the downside, immediate support is seen at 1.1595(SMA20), a break below could take the pair towards 1.1570(38.2%fib).

GBP/USD:    Sterling edged higher on Wednesday as markets moved into crunch time for a divided Federal Reserve policy board. Futures markets are confident the Fed will deliver a quarter-point rate cut later in the day, to a target range of 3.50%–3.75%, assigning an 89% probability. However, they also expect hawkish guidance, with only a 21% chance of another move in January.

Attention will focus on the “dot plot” projections, which will show how many policymakers anticipate one, two or no further rate cuts next year. Analysts also warn that at least two of the 12 voting members could dissent against easing, potentially leaving Chair Jerome Powell navigating a delicate policy outcome.Immediate resistance can be seen at 1.3364(Higher BB), an upside break can trigger rise towards 1.3427(61.8%fib).On the downside, immediate support is seen at 1.3295(50%fib), a break below could take the pair towards 1.3182(SMA 20).

AUD/USD: The Australian dollar hovered near three-month high on Wednesday as   investors braced for a possibly hawkish guidance from the U.S. Federal Reserve.The Fed is widely expected to announce a rate cut on Wednesday, but investors expect policymakers to remain divided.Some policymakers have warned that price pressures could easily pick up again, while others have been more concerned about the labor market's health.Meanwhile, the Reserve Bank of Australia caught markets off guard with a sharply hawkish shift, ruling out further rate cuts and warning that hikes could come as early as February if inflation fails to moderate.Further direction may come from domestic data, with Australia’s November employment report due on Thursday. Economists polled   expect a 20,000 rise in jobs and the unemployment rate holding at 4.4%.. Immediate resistance can be seen at 0.6652(38.2%fib), an upside break can trigger rise towards 0.6706(23.6%fib).On the downside, immediate support is seen at 0.6606(50%fib), a break below could take the pair towards 0.6559(61.8%fib)

USD/JPY: The dollar   dipped on Wednesday as the yen  recovered some ground as investors braced for the Fed policy announcements.  All eyes were on the Fed's decision due later in the day, in which a 25-basis-point rate cut is almost fully priced in.Meanwhile, Bank of Japan (BOJ) meets next week and is expected to raise interest rates, though focus will also be on what Governor Kazuo Ueda says about the future policy path.Expectations of more expansionary fiscal measures in Japan have complicated the outlook for BOJ policy under which rates remain among the lowest in the world, in contrast to its peers elsewhere. Immediate resistance can be seen at 156.17(Dec 1st high) an upside break can trigger rise towards 157.40 (23.6%fib) .On the downside, immediate support is seen at  155.34 (38.2%fib)  a break below could take the pair towards 153.35 (50%fib)

Equities Recap

Asian shares were subdued on Wednesday as investors braced for a pivotal decision from a divided Federal Reserve, with upcoming earnings set to challenge lofty AI-sector valuations..

Japan’s, Nikkei 225    was down   0.12%, South Korea’s KOSPI was down 0.21%,Hang Seng was up  0.02 %

Commodities Recap

Gold steadied on Wednesday, as investors prepared to parse Federal Reserve Chair Jerome Powell's guidance on a day when the bank is widely expected to deliver an interest rate cut, while silver continued its record-breaking run above $60 an ounce.

Spot gold   was flat at $4,210.79 per ounce, as of 0606 GMT. U.S. gold futures GCcv1 for February delivery rose 0.1% to $4,238.90 per ounce.

Oil prices held steady on Wednesday after falling about 1% in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on U.S. interest rates.

Brent crude futures were up 19 cents, or 0.3%, to $62.13 a barrel at 0645 GMT. U.S. West Texas Intermediate crude was at $58.44 a barrel, up 19 cents, or 0.3%.