Asia Summary and Highlights 17 Jan

Asia Session

On Wednesday, we have China Q4 GDP which came in slightly lower than 5.3% estimate at 5.2% but improving from 4.9% in Q3, it shows a 1.0% q/q improve which meets estimate. Overall, it meets thew Chinese government goal of 5% growth. The other Chinese activity data showed a mixed picture which is in line with the ongoing scenario in China. Regional equities are lower, so as U.S. major equity indexes but to a smaller magnitude. AUD/USD stay depressed by these factors and is trading 0.33% at 0.6562, NZD/USD also 0.22% lower at 0.6124 while USD/CAD is 0.11% higher at 1.3509.

USD continue to trade stronger against majors with the backdrop of empty geopolitical headline. U.S. Treasury Yields are performing mixed while JGB yields are higher. Yet, it does not stop the USD/JPY to march higher after breaking the Jan 11 high and has reached level last seen on Dec 1 at 147.57 and is 0.27% higher for the session. Elsewhere, EUR/USD is 0.11% lower and GBP/USD is 0.2% lower.

North American session
The USD strengthened through the US session, rising across the board but most notably against the JPY, supported by a general rise in US yields. USD/JPY gained around 60 pips to 147.20, but USD gains elsewhere were much more modest, with EUR/USD only losing around 10 pips, and AUD and GBP seeing similarly small declines. USD/CAD was net little changed on the session, after initially falling back 30 pips after stronger than expected Canadian CPI data, which showed larger than expected rises in all the core measures monitored by the BoC. 
US yield and USD gains came in spite of a much weaker than expected Empire manufacturing survey, which showed its lowest reading since the pandemic. Comments from Fed’s Waller, who said that easing would be cautious, supported the move.