Asia FX, dollar muted amid Fed caution; China data shows deflation persists

Former President Donald Trump criticized the Federal Reserve's recent decision to implement its third consecutive interest rate cut, labeling it as 'too small' and expressing a desire for a more substantial reduction. This move has sparked significant dissent within the Fed, with three officials opposing the decision, marking the highest level of dissent in six years.

Gold prices have consolidated at elevated levels as traders digest the Federal Reserve's outlook on interest rates. This stability follows a period of fluctuating economic signals and reflects market anticipation regarding potential monetary policy shifts.

Mexico has approved tariffs of up to 50% on various imports from China, prompting a strong response from Beijing, which criticized the measures as unilateral and harmful to Chinese interests.

China, along with several European nations, has raised objections to a proposed exemption for US multinationals from the OECD's global minimum tax framework, effectively stalling the agreement. This move highlights the tensions surrounding international tax policies and the influence of major economies in shaping these regulations.

China's oil demand is projected to plateau between 2025 and 2030, according to research from CNPC. This forecast indicates a significant shift in the country's energy consumption patterns as it navigates economic challenges and seeks to stabilize its energy market.

Chinese officials have announced a commitment to prioritize domestic demand in their economic policy roadmap for 2026, signaling a shift in focus towards internal consumption. This decision comes as part of broader efforts to stabilize and sustain economic growth in the country.

Policymakers in Europe are under increasing pressure to consider lowering interest rates, particularly if the U.S. dollar continues to weaken significantly. This situation arises as the European Central Bank (ECB) evaluates its monetary policy in light of economic conditions.

Mexico has approved tariffs of up to 50% on various imports from China and other countries, set to take effect on January 1. This decision includes a range of goods such as cars, clothing, and appliances, marking a significant shift in the country's trade policy.