Asia Summary and Highlights 28 August

Asia Session

The New Zealand ANZ business outlook index for August has jumped to 50.6 from 27.1, the strongest level in 10 years. The activity outlook is boosted by service and retail, which significantly supported the Kiwi on Thursday's Asia session. NZD/USD is trading 0.77% higher at 0.6293. In the other hand, The Q2 Australia CAPEX has come in at -2.2% from 1% growth in Q1. It will weigh in the softer Australian economy. But given the current inflationary dynamics, it is hard to see a weaker economy to bring RBA's cut early. AUD/USD gains are partially reversed to trade 0.25% higher at 0.6802 after reaching a session high of 0.6083.

The risk space was watching Nvidia's earning in the after hour to determine the tone. While the earnings beats estimate, there is a broad based sold off in the U.S. equity space. U.S. three major equity indexes have barely closed the gap while regional equities are mostly negative. USD/JPY is trading 0.17% higher at 144.84 with JGB yields fell more than U.S. counterpart. Else, EUR/USD is up 0.12% and GBP/USD is up 0.15%.

North American session

In a session with little news, the USD made some modest gains, with equity losses weighing on the riskier currencies. GBP/USD fell to 1.3185 and USD/CAD advanced to 1.3475 but AUD/USD was only marginally weaker at .6780. USD/JPY made only marginal gains, finding sellers at 145. EUR/USD stabilized at lower levels near 1.1115. EUR/GBP edged up to .8430 but EUR/CHF slid further to .9365.