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While economic data out of the US was mixed overnight, the market has given plenty of attention to Fed member Richard Fisher’s comments saying he unsuccessfully pushed for a larger taper of around $20 billion as opposed to the token taper of $10 billion that we received. Fisher will be a voting member next year and he’ll be lobbying for a heftier taper than what we’ve seen so far. However, he dismissed talk that the currently rally in US markets is an asset bubble. While Australia celebrates Christmas Eve, the US will release durable goods orders and new home sales data tonight along with the Richmond manufacturing index. Further positive signs will only lead to more USD strength which would be positive for USD/JPY.
Data dump from Japan this week
There is no rest on the Japan front with the BoJ monthly report today while BoJ Gov Kuroda speaks tomorrow. On Thursday we have Japan’s weekly fund flows data and minutes from last week’s BoJ meeting. Unemployment claims will from the US will still be released on Thursday while Friday brings a data dump from Japan. We will get household spending, CPI, unemployment rate, industrial production, retail sales and average cash earnings due out. Look for USD/JPY to rally back to last week’s highs at 104.64 and for the Nikkei to consolidate its gains above 16,000.