Asia Summary and Highlights 7 Oct
Japan August Household spending +2.3% y/y
Asia Session
The Japan August Household spending came in strong at +2.3% y/y and +0.6% m/m. It will be a pleasant surprise for the BoJ as it indicates a somewhat sustainable recovery in private consumption. However, with the new Japanese PM tilted towards fiscal spending, the BoJ may avoid a direct contradictory move and rend such data less impactful. USD/JPY is trading 0.07% higher at 150.44.
Regional equities are outperforming U.S. equities on Tuesday. The Nikkei continues to perform strongly while U.S. equities have their toes in the red. The AUD/USD is trading 0.1% lower at 0.6611 as consumer confidence and ANZ job ads both dips.NZD/USD is also trading 0.28% lower at 0.5826while USD/CAD rises 0.04%. Else, EUR/USD and GBP/USD are down 0.1%.
North American session
The USD slipped in the North American morning before stabilizing in the afternoon. A dip in USD/JPY below 150 was not sustained with a return to 150.25 following, though EUR/USD reversed its losses seen in Europe rising above 1.17 after bottoming near 1.1650. EUR/GBP and EUR/CHF however largely sustained European losses, the former unable to move back above .87, while GBP/USD rallied to 1.3490 from 1.3420. AUD/USD moved back above .66 and USD/CAD saw modest losses to 1.3950.
There was little news with no sign of any progress towards ending the government shutdown.