Asia Summary and Highlights 13 September
USD/JPY dipped to yearly low at 140.65
Broad sentiment is mixed on Friday
Asia Session
As U.S. Treasury Yields slip across the curve, the USD/JPY take a quick test to yearly low at 140.65 before rebounding to sub 141 level currently. There is little impetus form the Japan end, the move seems to be triggered by market participants anticipating of the September FOMC cut. USD/JPY is trading 0.52% lower at 141.05 with the minor rebound fueled JGB yields also sliding.
Broad sentiment is mixed on Friday with HSI and U.S. three major equity indexes in the green while other regional indexes in the red. The USD is trading lower against major and seems to be supporting the Aussie. The AUD/USD is trading 0.04% higher at 0.6726, NZD/USD is unchanged at 0.6183 while USD/CAD slips 0.02%. Else, EUR/USD is up 0.1% and GBP/USD is up 0.16%.
North American session
The ECB eased by 25bps as expected and the tone at the press conference was little changed. EUR/USD, having earlier found support near 1.10, moved gradually higher through the session, moving above 1.105 in the afternoon to reach 1.107. GBP/USD marginally outperformed, rising to 1.3120 from around 1.3040.
US August PPI was slightly above consensus at 0.2%, 0.3% ex food and energy but the USD was generally slightly softer, AUD/USD moving above 0.67 and USD/JPY slipping below 142 from 142.50. A WSJ report suggesting it is a close call whether the FOMC moves by 25bps or 50bps in September weighed on the USD in the afternoon. USD/CAD was an exception to the softer USD story, briefly edging above 1.36, despite a strong 22.1% rise in July Canadian building permits, before an afternoon correction. US initial claims rose marginally to 230k from 228k.