investingLive Asia-Pacific FX news wrap: GBP down. Oil, NZD, gold all higher.

• ICYMI: China home prices steepest fall in a year as industrial, investment data weaken
• FX intervention – Indian central bank likely selling U.S. dollars to support rupee
• U.S. approves potential US$330m fighter-jet parts sale to Taiwan
• Oil surges after drone strike hits Russian Novorossiysk terminal, heightening supply risks
• China say stabilisation taking hold despite weak investment and industrial slowdown in Oct
• Amazon, Microsoft back bill curbing Nvidia’s China chip exports to secure U.S. AI supply
• China Oct Retail Sale (YoY) 2.9% (exp 2.7%) & Industrial Production (YoY) 4.9% (exp 5.5%)
• US, South Korea unveil deal with major investments, tariff cuts and defence expansion
• Intervention: South Korea won-stabilising measures after currency sinks to seven-month low
• China October new house prices -2.2% y/y (prior -2.2% also)
• PBOC sets USD/ CNY reference rate for today at 7.0825 (vs. estimate at 7.0964)
• EUR/GBP above 0.8852, a 2.5 year high as UK ditches income tax rate hike plans
• Japan’s Takaichi backs away from minimum-wage target amid pushback from regional firms
• UBS: China’s AI power build-out (5–6GW) is modest vs U.S. (40–45GW), signalling no bubble.
• China – Evergrande Property Services invites updated bids as liquidation process advances
• Japan’s Economy Minister Kiuchi says a weak yen can push up CPI through import costs
• More on UK drops income-tax hike plans ahead of November budget
• GBP is taking a hit after the report that Starmer is going to drop plan to hike tax rates
• US media report Trump preparing to back down on some tariffs in order to lower food prices
• UK PM Starmer and fin min Reeves drop plan to hike income tax rates
• MUFG: Policy divergence supports AUD/NZD as RBA holds firm and RBNZ eyes more cuts
• Citi: September payrolls near, October data likely pushed to December
• US/Swiss talks very positive, tariff & barrier reductions expected pending Trump approval
• investingLive Americas market news wrap: Rough day in stock markets
• New Zealand October 2025 Manufacturing PMI jumps to 51.4 (prior 50.1, revised from 49.9)
• Biggest daily decline for stock markets since October 10
• RBNZ’s Gai says global tensions, trade shifts cloud outlook. Needs clearer policy signals.

GBP

There was important news out of the UK, with the Financial Times reporting that Prime Minister Keir Starmer and Chancellor Rachel Reeves have abandoned plans to raise UK income tax rates just weeks before the 26 November budget. The government faces a fiscal gap of roughly £30 billion and will now be scrambling for alternative revenue sources. The pound took a hit on the headlines, with EUR/GBP pushing to a 2½-year high.

NZD

The New Zealand dollar outperformed during the session. The lift came partly from data showing the October Performance of Manufacturing Index jumped to 51.4 (from a revised 50.1 for September), but most of the attention centred on the RBNZ’s confirmation that it will ease mortgage loan-to-value restrictions on 1 December.

• For owner-occupiers, the share of new lending allowed with an LVR above 80% will rise to 25% (from 20%).

• For investors, the LVR limit at >70% will rise to 10% (from 5%).

Oil

Oil prices also surged more than 2% after a Ukrainian drone strike damaged an oil depot at Russia’s Novorossiysk port — a site handling around 2.2 million bpd of crude and condensate. Analysts said the strike underscored persistent supply risks tied to both Ukrainian attacks and tightening Western sanctions.

Other items of interest:

A senior U.S. official said trade talks with Switzerland were “very positive,” with Washington considering a deal to cut tariffs on Swiss imports pending President Trump’s approval.

The New York Times reported that the Trump administration is preparing tariff exemptions aimed at reducing food prices, following earlier reports this week that the White House is looking to ease cost-of-living pressures.

China’s property slump deepened, with new-home prices in 70 cities falling 0.45% m/m in October, the steepest drop in a year, and resale values sliding 0.66%, the fastest decline in 13 months. The four-year downturn continues to weigh heavily on household sentiment and consumption. Industrial output rose 4.9% YoY, missing forecasts, retail sales gained 2.9%, and fixed-asset investment fell 1.7% YTD. The unemployment rate slipped to 5.1%.

The People’s Bank of China set the daily USD/CNY fix at its strongest since October 2024, a signal aimed at supporting consumption by making imports cheaper. The yuan briefly hit a one-year high on exporter dollar-selling before easing post-data.

In geopolitics and markets, the United States and South Korea unveiled a sweeping economic and security agreement featuring major tariff reductions and hundreds of billions of dollars in Korean investment. Meanwhile, South Korea’s FX authorities vowed to stabilise the won after it fell to a seven-month low. Dealers suspect authorities have already intervened via dollar-selling.

Separately, the Wall Street Journal reported that Amazon and Microsoft have publicly backed the proposed Gain AI Act — legislation that would restrict Nvidia’s ability to export advanced chips to China — marking a rare policy split between the tech giants and one of their largest suppliers.

Asia-Pac
stocks followed Wall Street lower:

• Japan
  (Nikkei 225) -1.81%
• Hong
  Kong (Hang Seng) -1.26%
• Shanghai
  Composite -0.16%
• Australia
  (S&P/ASX 200) -1.45%

This article was written by Eamonn Sheridan at investinglive.com.