Asia Summary and Highlights 15 August

Asia Session

The July Australian labor data has come in stronger than expected. Headline employment change continue to be grow at +58.2k with full time employment grew +60.5k. While unemployment rate y/y edged up to 4.2% from 4.1%, it came along the higher participation rate y/y of 67.1% from 66.9%. With such hot labor report, RBA may reassess its current forecast of wage growth and reinforces their push back of easing. AUD/USD is trading 0.47% higher at 0.6626 after touching a session low of 0.6564, NZD/USD shook off early weakness to trade 0.07% higher at 0.6002 while USD/CAD is unchanged.

The Q2 Japan GDP has returned to expansion after two dismay quarters, led by a rebound in private consumption and capital expenditure. It would be welcoming for the BoJ as they are tilting towards a hawkish side in terms of forward guidance and policy step. USD/JPY is trading unchanged with JGB outperforming U.S. Treasury in yields. Else, EUR/USD is down 0.02% and GBP/USD is up 0.11%.

North American session

Focus was on US July CPI data which came in on consensus with gains of 0.2% overall and ex food and energy, though both were a little softer before rounding. A knee-jerk USD dip on the data was quickly reversed and more, and while the downside was attempted once again, the USD ended marginally firmer. 

EUR/USD was little changed near 1.01 while USD/JPY saw only a modest rise to 147.25 from 147. GBP/USD, after fully erasing its post-CPI dip to touch back above 1.2860 ended near its post-CPI low of 1.2820. EUR/GBP maintained European gains but European losses for EUR/SEK were erased. EUR/CHF was slightly firmer at .9525. AUD/USD underperformed, touching below .66 while AUD/CAD lost 50 ticks to .9050.