Asia Summary and Highlights 18 Jun

Asia Session

The May Japanese trade balance come in less negative than expected. While export still contracts by 1.7% y/y, it fares better than estimate. However, import contracts stronger at 7.7%, continue to points toward soft private consumption on negative real wage. USD/JPY is trading 0.17% lower at 145.

Geopolitical tension persists with the U.S. one remark away from getting involved and Iran vowed to retaliate with "biggest surprise". But so far there is little escalation and see equities performing individually. U.S. major equity indexes and Nikkei are in the green while regional equities in China and Hong Kong are in the red. AUD/USD is trading 0.39% higher at 0.6502, NZD/USD is up 0.3% while USD/CAD slips 0.13%. Else, EUR/USD is up 0.19% and GBP/USD is uo 0.9%.

North American session

Despite weak US data the USD was stronger on concerns over the Iran-Israel conflict, particularly after Trump demanded Iran’s unconditional surrender. Oil advanced and equities fell. USD/JPY rose to 145.25 from 144.70 while EUR/USD fell to 1.1485 from 1.1560. EUR/GBP was stronger near .8550 as GBP/USD fell over a big figure below 1.3450 but EUR/CHF was weaker near .9375 as USD/CHF saw a only a modest rise to .8165 from .8125, CHF also supported by risk off sentiment. AUD/USD fell well below .65 while USD/CAD rose well above 1.36 as riskier currencies suffered generally. 

May US retail sales fell by 0.9%, with declines of 0.3% ex autos and 0.1% ex autos and gasoline. May industrial prediction fell by 0.2% and while manufacturing rose by 0.1% manufacturing ex autos fell by 0.3%, June’s NAHB homebuilders’ index fell to 32 from 24, its weakest since December 2022.