Asia Summary and Highlights 28 August

Israel launches a large scale operation against militants in the northern West Bank
Asia Session
Israel launches a large scale operation against militants in the northern West Bank. Thousands of solider are reported to be mobilized for operation that is expected to last for weeks. The target location will be in Tukarm and Jenin with exact target yet to be revealed. So far such geopolitical tension's impact towards the market remains minimal but must be closely watched. Regional equities are lower with Nikkei's toe in the green. U.S. three major equity indexes close to unchanged. The July Australian monthly CPI arrived at 3.5% y/y, a moderation from 3.8% but still higher than the 3% target range of RBA. It supports RBA’s rhetoric to push back easing. AUD/USD rose to 0.6812 before retracing to 0.6797 now, NZD/USD is 0.09% lower at 0.6247 while USD/CAD rose 0.07%.
BOJ Deputy Gov. Himino says the financial and capital markets remain unstable. Despite Ueda's speech before parliament on last Friday suggest a hawkish tilt from the BoJ, if BoJ members are concerned about market stability, the magnitude and pace of further tightening will be likely restrained. USD/JPY reversed earlier losses to trade 0.37% higher at 144.46 despite JGB yields outperform their U.S. counterpart. Else, EUR/USD is down 0.22% and GBP/USD is down 0.14%.
North American session
The USD was generally weaker in North America. USD/JPY drifted steadily lower from around 144.80 to touch marginally below 144. EUR/USD saw early weakness but found support at 1.1150 before bouncing in the afternoon to 1.1185. EUR/GBP remained weaker as GBP/USD rose to 1.3260 while EUR/CHF losses extended to .9410 as USD/CHF fell to .8415. USD/CAD slipped to 1.3450 while AUD/USD gains stalled just ahead of .68.
US consumer confidence rose to 103.3 from 101.9 but detail showed softer views on the labor market and inflation expectations, helping to maintain pressure on the USD. Fed minutes on the Discount Rate showed the Chicago and more significantly New York Feds called for a cut in July.