Asia Summary and Highlights 28 May
China's Shanghai has announced property sector support measures
Asia Session
Shanghai has announced property sector support measures by cutting payment requirement and lowering rates, to further support the local Chinese property market. Regional sentiment in China and Hong Kong are positive and lends support to the Aussie. The Australian Retail Sales for April also came in slightly lower than estimate, but reverted the contraction of March, at 0.1% m/m. The domestic demand is forecasted to be soft for longer and any growth should be appreciated. AUD/USD is trading 0.22% higher at 0.6668, NZD/USD is trading 0.15% higher at 0.6159 while USD/CAD slipped 0.07% on higher oil.
As USD/JPY hovers around 157, we are hearing more jawboning from Suzuki, repeating it is important currencies move in a stable manner reflecting fundamentals. But what really giver JPY a few bids are higher Japan Services PPI at 2.8% y/y. Higher service PPI would be welcoming for the BoJ if they decided to further tighten, supporting the JPY. USD/JPY is trading 0.01% lower at 156.79 as JGB's strength outpace U.S. Treasury Yields. Else, EUR/USD is up 0.17% and GBP/USD is up 0.05%.
North America
The EUR was not really hurt by ECB Villeroy suggesting that the ECB should not rule out a July cut after the widely expected June 6 cut, which had prompted a decline in EUR bond yields on Monday. GBP did gain ground versus the EUR monday, with the ECB expected to move ahead of the BOE.
Elsewhere, the AUD and CAD gained ground in quiet Americas trading, as sentiment remains positive towards commodities and this is spilling over to commodity currencies. Additionally, sentiment towards China is becoming less negative and this is also helping sentiment.