Asia Summary and Highlights 4 August

Asia Session

Australia June household spending beats estimate at 0.8% m/m and seems to cement expectation of more RBA hikes. We are quite skeptical that RBA will hike further until the second round of energy spike materialize in the system. AUD/USD is trading 0.27% higher at 0.7020. Broader risk sentiment is upbeat except Japan and HK. NZD/USD is trading 0.12% lower while USD/CAD rises 0.03% with oil up more than a USD/B.

While joint intervention risk is putting a lid on USD/JPY strength, the pair is retesting Monday's high as fundamental picture did not change. USD/JPY is trading 0.27% higher at 157.57. JGB yields stays higher across the curve. Else, EUR/USD is unchanged and GBP/USD is down 0.09%.