Asia Summary and Highlights 27 Jun

Asia Session

Tokyo headline CPI has treaded lower at 3.1% y/y in June from 3.4% in May. With ex fresh food and ex fresh food & energy also at 3.1%, it does suggest a slight ease of inflationary pressure but still far above BOJ’s target at 2%. USD/JPY is trading 0.07% higher at 144.45.

Equities are performing individually as U.S. hails more progress in their trade agreement with China while Chinese data shows a sharp fall in industrial profits. U.S. equities are outperforming regional equities. AUD/USD is trading 0.02% lower at 0.6545, NZD/USD i up 0.05% at 0.6060 while USD/CAD rise 0.05%. Else, EUR/USD is down 0.08% and GBP/USD is down 0.02%.

North American session

US data was mixed, with a downward revision to Q1 GDP led by consumer spending and a rise in May’s advance goods trade deficit, but a fall in initial claims and stronger durable goods orders, even outside a sharp surge in aircraft. The USD did however see some modest slippage, assisted by Fed’s Daly stating that fall was promising for a rate cut, though most Fed speakers were fairly cautious.  

USD/JPY kept to a tight range a little above 144, while EUR/USD kept to a 1.1690 to 1.1740 range. The riskier currencies saw slightly stronger gains, GBP/USD rising to 1.3735 from near 1.37, AUD/USD to .6550 from .6530, and particularly USD/CAD, which fell to 1.3635 from 1.3690.  t reaction.