Asia Summary and Highlights 4 Mar
Australian Q4 GDP +0.8%
Asia Session
The Australian Q4 GDP has beaten estimate at 0.8% q/q and 2.6% y/y. Overall, it is a decent report for Australia yet focus remains on CPI and geopolitical tension. Major equity indexes are lower with the Nikkei leading with more than three percent losses. Precious metal is recovering partial losses but still far from the weekly high. AUD/USD is trading 0.46% lower at 0.7001. NZD/USD is trading 0.11% higher while USD/CAD rises 0.08%. Oil stay strong and extend by another USD.
As USD/JPY rises past February high (157.66) and quickly approaching annual high (159.45), we are hearing from Japan finance minister Katayama "It would be desirable for currencies to move in stable manner reflecting fundamentals". Classic verbal intervention but does not seem to indicate any imminent intervention idea. USD/JPY is trading 0.04% lower at 157.61. Else ,EUR/USD is down 0.12% and GBP/USD is down 0.3%.
European and North American sessions
Focus remained on the Middle East, with the USD rising in Europe and remaining firmer in North America, though coming off its highs. Equities opened weak but saw a partial recovery as the North American session progressed, assisted by a Trump promise to escort shipping through the Strait of Hormuz. There was no significant data but Fed’s Williams saw scope for easing if inflation fell as he expected.
USD/JPY peaked just below 158 after rising from 157.15 before correcting to near 157.60. EUR/USD slipped to a low of 1.1530 from 1.1670 before recovering to 1.1620. EUR/GBP slipped below .87 and EUR/CHF fell to .9080 from .9120. UK Chancellor Reeves’ spring statement brought few surprises. USD/CAD largely revered a bounce to 1.3750 from near 1.3650 while AUD/USD, after falling to .6950 from .71, recovered to around .7050.