Asia Summary and Highlights 21 Feb

Asia Session

The Australian Q4 2023 Wage Price Index has met estimate at +0.9% q/q and beat estimate y/y by 0.1% to +4.2%. On a q/q basis, we are seeing Australian wage slows along with the easing of labor market which supports RBA decision to keep rates on hold. However, on Wednesday, the move in the Aussie is guided by belated rate cut optimism in the Chinese and Hong Kong Equity market and strength in the Yuan (strongest for Feb). The HSI is up more than three percent where SSE gained close to 2% after opening lower. AUD/USD is trading 0.26% higher at 0.6566, NZD/USD up 0.36% to 0.6186 while USD/CAD slipped 0.09% with oil gaining 10 cents.

Elsewhere, we have Toyota saying wage negotiations with unions continue and U.S. House Republicans are not optimistic towards another bill to keep the government from shutting down. USD/JPY is unchanged at 150 figure as we are far from the result of wage negotiation and JGB yields falling along U.S. Treasury Yields. EUR/USD benefited from the softer USD to trade 0.06% higher and GBP/USD is up 0.07%. 

North American session

The USD edged a little lower in the North American session, though came off its lows in the afternoon, in generally quiet conditions. EUR/USD peaked at 1.0839 but remained above 1.08 while USD/JPY bottomed at 149.69 before recovering to 150. 

Canadian CPI was the only significant data, and came in a long way below expectations in all measures. So while the USD was generally lower, USD/CAD rose around 40 pips to 1.3520.