Asia Summary and Highlights 3 Sep
Australia Q2 GDP +0.6% q/q
Asia Session
The Australia Q2 GDP came in at +0.6% q/q, slightly higher than estimate, so as the 1.8% y/y growth. Consumption is showing some signs of picking up, which is favorable as RBA cut rates. The broad risk sentiment is sour. AUD/USD is trading 0.09% lower at 0.6515, NZD/USD is trading 0.16% lower at 0.5855 while USD/CAD rises 0.1%.
USD is trading broadly higher against majors on Wednesday. Both the U.S. Treasury and JGB yields are higher for the session with JGB yields lingering at yearly high. USD/JPY is trading 0.14% higher at 148.56. Else, EUR/USD is down 0.04% and GBP/USD is down 0.21%.
North American session
The USD’s European strength extended early but had peaked before the August US ISM manufacturing index of 48.7, while up from 48.0 in July, came in slightly below expectations. This extended the USD’s correction before stabilization was seen in the afternoon.
USD/JPY at 148.40, EUR/USD at 1.1640 and GBP/USD at 1.3390 were not far from European levels, with EUR/GBP remaining near .87. AUD/USD recovered from a move below .65 and USD/CAD was unable to hold above 1.38.