Asia Summary and Highlights 26 September
BOJ July minutes calls for further gradual, but timely, interest rate increases
It is reported that China is considering injecting US$142bn of capital into top banks
Asia Session
The BOJ July minutes calls for further gradual, but timely, interest rate increases, confirms their hawkish stance of further tightening. There is little other surprises from the minutes as the BoJ has already showed their stance in the latest rhetoric. JGB yields opened higher while U.S. Treasury Yields slightly lower and see USD/JPY trading 0.07% lower at 144.63.
It is reported that China is considering injecting US$142bn of capital into top banks from Bloomberg and Reuters. It seems to be more follow through stimulus from the Chinese government. Regional sentiment is well supported by such and see AUD/USD 0.31% higher at 0.6844, U.S. three major equity indexes are also in the green. NZD/USD is only up 0.07% to 0.6266 while USD/CAD slipped 0.11%. Else, EUR/USD is up 0.1% and GBP/USD is up 0.15%.
North American session
The USD saw some modest slippage early in North America, with EUR/USD moving above 1.12 and GBP/USD moving above 1.34, but after a stronger than expected US new home sales report the USD gradually built momentum. While sales fell by 4.7%, to 716k, this followed a 10.4% July rise that was revised to 751k from 739k, making it the strongest month since February 2022.
EUR/USD fell to 1.1130 and GBP/USD fell to 1.3315. USD/CAD rose to 1.3480 from 1.3440 and AUD/USD fell to .6820 from .6870. USD/JPY advanced modestly from European highs to 144.70. EUR/JPY saw a modest correction from early highs above 161.50 to 161 while EUR/CHF after reaching .95 fell back to .9460.