Asia Summary and Highlights 5 November
RBA kept rates unchanged at 4.35%
Asia Session
In the November meeting, the RBA has kept rates unchanged at 4.35% without a hint they will be cutting earlier despite headline CPI approaches target range. RBA acknowledged the fall in inflation but highlighted such moderation was partially due to government rebate. The rhetoric continues to push back expectation of early easing but provides little news, suggesting their view of first cut in mid 2025 did not change. The Aussie is unfazed by the decision as it did not change expectation. AUD/USD remains 0.1% higher at 0.6591, NZD/USD and USD/CAD are unchanged
Regional risk sentiment started on a better note (up more than a percent) on Tuesday while U.S. three major equity indexes are recovering earlier losses. JGB yields are lower so far on the Tuesday's Asia session while U.S. Treasury yields perform slightly better. USD/JPY edged higher but still has way to close Monday's opening gap. USD/JPY is currently trading 0.2% higher at 152.42, almost half a figure away from Friday close at 152.92. Else, EUR/USD and GBP/USD are also unchanged for the session.
North American session
In a session with little news the USD saw modest gains, EUR/USD slipping back to 1.0880 from 1.09 and USD/JPY rising to 152 from 151.50. The USD may have been supported by betting odds correcting a boost to Kamala Harris’ prospects for an election win after a widely watched poll showed her surprisingly ahead in Iowa. There was not much movement in GBP but EUR/CHF losses extended to .94. AUD was marginally weaker but CAD little changed.