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Forex Today: USD rules the roost, UK PMI EZ Sentix and Brexit deadline - Key

Broad-based US dollar strength was the main theme in Asia on Monday, in the wake of the US tax reform bill passage and faulty ABC reports on Flynn. The greenback witnessed a bullish opening gap and extended the advance amid rallying Treasury yields, which weighed down heavily on the safe-haven Japanese yen. However, the Swiss franc was the weakest across the fx board, followed by the Yen and Kiwi.

On the data front, the Australian MI inflation gauge and company operating profits, both disappointed markets and weighed down on the Aussie while the pound stood resilient on hopes of a Brexit deal.

Amidst weaker oil prices and Asian stocks, the appetite for risky assets was restricted. However, the safe-haven gold failed to benefit from cautious market sentiment, which was offset by a broadly higher USD.

Main topics in Asia

NZ Treasury - Flatter house prices a drag on consumption growth

The New Zealand Treasury monthly economic analysis for November shows the flatter house prices are likely to act as a drag/or provide less impetus to consumption growth than in recent years. 

Australia Melbourne Institute Inflation at 4-month high

The Australian Melbourne Institute inflation index for November rose 2.7 percent; its highest since July. Month-on-month, inflation rose 0.2 percent vs. previous month's print of 0.3 percent. 

Dollar index strengthens as the treasury yields rise

The dollar index (DXY) rose to a high of 93.09 in Asia as the treasury yields ticked higher on Senate's approval of tax overhaul and following the faulty ABC report on former National Security adviser Flynn.

Half of Britons support a second vote on Brexit, poll finds - Reuters

According to a new poll, half of Britons support a second vote on whether to leave the European Union and a majority think the government may be paying too much money to the EU to end the deadlock.

Japan may cut corporate tax rate to 20% through incentive - Nikkei

The Nikkei Asian Review out with the latest headline on the Japanese fiscal scenario, noting that the government may cut the corporate tax rate to 20% through incentive.

Key Focus ahead

Heading into a new week, the economic calendar remains fairly light, with the Eurozone Sentix investor confidence slated for release ahead of the UK construction PMI and Eurozone PPI data. Also, of note remains the Eurogroup meeting and US factory orders data. However, the Dec 4 Brexit deadline remains in the spotlight, which is expected to have a major impact on the GBP markets and on the overall market sentiment as well.

GBP/USD: Bulls nervous ahead of the Dec 4 Brexit deadline, UK PMI

The GBP/USD pair failed yet another attempt to survive above 1.35 handle, sending the rates lower to now consolidating around 1.3470 levels, as we gradually head towards the European open.

EUR/USD defends trendline amid USD rebound, Put OI spikes

Despite the US tax reform optimism and fading political uncertainty in the US, the EUR/USD managed to defend the trendline sloping upwards from the Nov. 7 low and Nov. 11 low. 

RBA to keep rates steady at tomorrow's meeting - Bloomberg survey

A Bloomberg survey of 26 banks shows the Reserve Bank of Australia (RBA) is expected to keep the interest rate unchanged at 1.5 percent.

Preview of the week ahead - Nomura

"We expect a solid increase in November nonfarm payroll employment, consistent with continued strong improvement in the labor market.”


US: Flynn pleaded guilty on lying to the FBI - ANZ

In the US, Michael Flynn pleaded guilty on Friday night with lying to the FBI about his contacts with Russian diplomat Kislyak, points out the researc
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South Korea, US kick off largest air exercise amid North Korean warnings

According to a South Korea-based US Air Force spokesman, South Korea and the United States launched their largest-ever joint aerial drills on Monday,
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