Asia Summary and Highlights 16 December

Asia Session

The latest PMI for Japan came in mixed but still shows improvement. Manufacturing PMI remain in contraction at 49.5 while service expands further to 51.4. However, the key remains from this week's BoJ and Fed decision and se USD/JPY currently challenging the 154 figure at 153.74, up 0.1% for the session as U.S. Treasury Yields slip and JGB yields opened higher.

On Monday, we have a slate of soft Chinese data which shows the property market remains an issue while retail sales missed estimate and industrial output stays solid. Regional sentiment is outperformed by the U.S. major equity indexes. AUD/USD is trading 0.24% higher at 0.6377, NZD/USD rose 0.34% higher at 0.5781 while USD/CAD slips 0.03%. Else, EUR/USD is up 0.18% and GBP/USD is up 0.14%. Most pair opened in favor of the USD but gaps are already closed.

European and North American sessions

October UK GDP was weaker than expected with a 0.1% decline, and the GBP initially dipped, though EUR/USD was supported by less weak than expected industrial production data, moving above 1.05 in early North America. This saw GBP/USD erase its post-GDP losses but with EUR/USD unable to hold above 1.05, GBP/USD saw renewed weakness, bottoming just above 1.26. EUR/GBP saw steady gains, moving comfortably above .83. EUR/CHF was also firmer near .9370.

USD/JPY was firmer as were UST yields, reaching 153.50 in Europe and extending to 153.70 in North America. AUD and CAD were firmer in Europe but largely erased their gains in North America.