Asia Summary and Highlights 9 April

Asia Session

The Reserve Bank of New Zealand cuts rate by 25bp to 3.75% as expected and along their own OCR forecast. Their OCR forecast continue to points towards more easing in the coming months. It is also expected they are seeing tariff's impact towards a worse economic outlook than before. NZD/USD is trading 0.07% higher as USD is sliding against major, AUD/USD also up 0.17% to 0.5968 while USD/CAD down 0.25%

On Wednesday, we are seeing another session that looks like risk asset being offered. Apart from the previous negative sentiment, Trump's remark on Chinese currency manipulation does not sound like there is any positive development. U.S. Treasury Yields are performing individually while JGB yields continue to rise. USD/JPY is down 0.84% to 144.97 with a session low at 144.57. U.S. major equity indexes are down roughly 2%, Japanese equities indexes are down 3-4% while Chinese equities recouped the opening gap and HSI stays in the red. Else, EUR/USD is up 0.95% and GBP/USD is up 0.62%.

North American session

Equities saw a strong opening on speculation trade deals could be made with individual countries to reduce tariff rates. However, the gains were erased, firstly hit by US Trade Representative Greer stating that there would be no near-term exceptions from tariffs, and secondly as the US confirmed tariffs on China would be raised to 104% overnight. This saw front end UST yields lower, but yields increased at the long end. 

USD/JPY rose to 147.50 then fell back to 146.25, AUD/USD rose to .6080 before falling to .5960. USD/CAD rebounded to 1.4250 from 1.4150. EUR/USD again found support below 1.09 and recovered to 1.0950. EUR/CHF was weaker, falling below .93, but a dip in EUR/GBP was erased as GBP/USD failed to hold above 1.28. A deal to form a centrist coalition government was achieved in Germany.