Asia Summary and Highlights 4 Feb
NZ Q4 jobs report mixed
Asia Session
The Q4 NZ jobs report came in mixed with a headline miss on unemployment rate but stronger participation. More importantly, labor cost grew by 0.5% as expected with higher employment change. While overall it is a decent report in the details, it is insufficient to sway the RBNZ. NZD/USD is trading 0.09% lower at 0.6040, AUD/USD is trading 0.12% higher while USD/CAD slips 0.06%.
The USD/JPY has recovered half of the losses since late January. Highly correlated with USD strength and also renewed concern about the result of the coming snap election, have kept JPY offered. The choppy risk trades do not seem to attract any meaningful haven bids yet, a further turmoil maybe needed to see more JPY bids. USD/JPY is trading 0.39% higher at 156.32 with short end JGB yields remain close to recent high and longer end moderates. Else, EUR/USD and GBP/USD are up 0.15%.
European and North American sessions
The USD picked up in the European morning but slipped back in North America to end little changed overall. USD/JPY touched 156 after opening in Europe around 155.40 and saw only a modest correction to 155.75. EUR/USD slipped to a low of 1.1780 but rebounded back near European opening levels around 1.1815. EUR/GBP had little direction but EUR/CHF slipped to .9160 from .9190. AUD/USD was stable near .70 consolidating post-RBA gains but USD/CAD slipped to 1.3640 from 1.3680.
The government shutdown meant that December’s JOLTS report was delayed but the House passed a bill that would allow the government to reopen. Equites slipped, led by tech.