Asia Summary and Highlights 27 Aug

Asia Session

The July monthly CPI came in hot for Australia at 2.8% y/y with a 0.9% m/m. It definitely calms speculation of consecutive cuts from the RBA. Yet, we do not see a significant deviation from our forecast and continue to forecast one more cut from the RBA in 2025. AUD/USD is trading 0.11% lower at 0.6487 on choppy regional sentiment, NZD/USD is down 0.25% at 0.5846 while USD/CAD rises 0.02%.

There has not been much update from the Trump-Cook fiasco and we see USD recovered all of Tuesday's losses. While U.S. Treasury yields are performing individually, USD/JPY are retesting Tuesday's high. USD/JPY is trading 0.41% higher at 147.92. Else, EUR/USD is down 0.21% and GBP/USD is down 0.19%.

North American session

The USD was generally weaker as worries over Fed independence persisted, though ended off its lows. Fed Governor Cook announced a legal challenge to her dismissal by Trump and the Fed stated it would abide by the any court ruling. EUR/USD was little changed at 1.1640 after peaking at 1.1665 while EUR/CHF slipped to .9355 from .9375. USD/JPY was slightly weaker at 147.40 after briefly slipping below 147.20. GBP/USD held up near 1.3480 while AUD/USD tested .65.  

July US durable goods orders were less weak than expected at -2.8% with ex transport unexpectedly firm with a 1.1% increase, giving a brief and modest lift to the USD. August consumer confidence at 97.4 was slightly above consensus but down from 98.7 in July, which was revised up from 97.2. Consumers were less positive on employment and expectations for inflation increased.