Asia Summary and Highlights 23 April
Trump said had no intention of firing Fed Chair Powell
Trump says he is going to be very nice to China
Risk asset broadly upbeat from Trump's remark
Asia Session
In early Asia, we have some "kind" words from Trump and see the risk market went euphoric. U.S. major equity indexes are jumping at the reopening bell and remained in the green as session progress. USD/JPY once shot to 143.21 before retracing most gains to trade 0.25% to 141.93 with U.S> Treasury Yields sliding across the curve and JGB yields erasing opening gains.
The broad risk asset sentiment is upbeat on Wednesday as market participants cheers on Trump's positive remark. There is nothing of material so far and we have not heard any response from China. U.S major equity indexes are little changed from the opening gap while regional equities perform individually yet stays in the green. AUD/USD is trading 0.43% higher at 0.6392, NZD/USD is up 0.28% to 0.5981 while USD/CAD is up 0.15%. Else, EUR/USD is down 0.22% and GBP/USD is down 0.16%.
North American session
The USD continued to recover, largely erasing Monday’s losses as equities rallied and the UST curve flattened, also in corrections from Monday’s moves. The primary catalyst was a remark from Treasury Secretary Bessent, who saw the US-China trade situation as unsustainable and expected de-escalation.
USD/JPY led the way, advancing from 140.50 to 141.50. EUR/USD extended European losses to 1.1425. While the USD gains were broad based, USD/CAD was an exception, slipping to 1.3825 from 1.3860. AUD/CAD slipped to .88.