Asia Roundup: Dollar under pressure as traders bet on further easing next year, Asian stocks edges higher, Gold tops $4,500 , Oil steady -December 24th,2025

Market Roundup

•  Japan Leading Index  (Nov) 109.8, 110.0 forecast, 108.6 previous

Looking Ahead Economic Data (GMT) 

• 05:30 Dutch GDP (YoY) (Q3)1.6% forecast, 1.7% previous

• 05:30 Dutch GDP (QoQ) (Q3)0.4% forecast,0.2% previous

Looking Ahead Events And Other Releases (GMT)  

•No Events Ahead

Currency Forecast

EUR/USD : The euro edged lower on Wednesday as investors wagered the Fed would have room to cut rates further next year even as some of its peers looked set to hike. The dollar has had a tumultuous year, whipsawed by President Donald Trump's chaotic tariffs that sparked a crisis of confidence in U.S. assets earlier this year, while his growing influence over the Fed has also raised concerns about its independence. The U.S. economy grew faster than expected, driven by robust consumer spending, the Commerce Department's Bureau of Economic Analysis said in its initial estimate of third-quarter GDP on Tuesday.Gross domestic product increased at a 4.3% annualized rate last quarter, the fastest pace since the third quarter of 2023, it said. 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 edged lower  against dollar on   Wednesday as traders assessed green shoots in the UK economy while keeping a close eye on persistent inflation. Data on Monday showed Britain's economy grew by 0.1% in the July-to-September period of this year, in line with the initial GDP estimate by the Office for National Statistics. But the ONS also said revisions to its data meant income flowing into Britain from foreign direct investment held abroad had been higher than previously thought.The pound has added 1% since the Bank of England delivered a widely expected rate cut last Thursday. But policymakers also hinted that the bar for further cuts remains high, with inflation elevated compared to other major economies.  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 Wednesday as Australian dollar was boosted by growing expectations of higher rates from the Reserve Bank. Minutes from the RBA's last meeting showed the board preparing the ground for a hike should inflation not recede as hoped, highlighting the importance of the fourth-quarter CPI numbers on January 28.The RBA holds its first meeting of the year on February 3 and markets imply a 28% chance of a quarter-point increase in the 3.6% cash rate. Continued gains across commodities also supported the resource-heavy currency with gold and copper hitting records, both of which are major export earners for Australia   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 lower on Wednesday  after BoJ October minutes signaled more policy tightening.The October minutes showed many members felt conditions were ripe for a rate hike but wanted more clarity on whether firms would continue raising wages next year amid uncertainty over higher U.S. tariffs. The main focus for the foreign exchange market remains on the yen, with traders alert to the possibility of an intervention from Japanese authorities to stem the currency's slide.Finance Minister Satsuki Katayama said on Tuesday that Japan has a free hand in dealing with excessive yen moves, issuing the strongest warning to date on Tokyo's readiness to intervene.That has left investors vigilant to official yen-buying from Tokyo, particularly as trading volumes thin towards the year-end, which analysts say would make an opportune time for authorities to strike. 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 stock markets edged higher on Wednesday, rounding off a strong year driven largely by gains in AI-related stocks.

China’s A50  down 0.24%,Japan’s Nikkei 225 was down 0.11%,South Korea’s KOSPI was down  0.26%

Commodities Recap

Gold jumped above $4,500 an ounce for the first time on Wednesday, with silver and platinum hitting record highs on safe-haven demand and expectations of further U.S. rate cuts next year.

Spot gold   rose 0.1% to $4,492.51 per ounce by 0359 GMT, after touching a record high of $4,525.19 earlier in the session. U.S. gold futures   for February delivery climbed 0.3% to a record high of $4,520.60.

Oil prices steadied on Wednesday, after gaining in the previous five sessions, supported by robust U.S. economic growth and the risk of supply disruptions from Venezuela and Russia.

Brent crude futures dipped 1 cent to $62.37 a barrel by 0326 GMT, while U.S. West Texas Intermediate crude   added 1 cent to $58.39.