Asia Summary and Highlights 14 Oct
Japan FM Kato says recently seeing one-sided, rapid moves
RBA September minutes signal patience in coming rate cuts
Asia Session
We are hearing another round of verbal intervention as the JPY got no break in the beginning of the week. It seems the only savior for JPY would be Trump occasional rant as we do not see any significant impact from Japan FM Kato's remark on one side JPY moves. USD/JPY is trading 0.24% lower at 151.88 with both the U.S. Treasury and JGB yields lower.
The September RBA minutes have provided little new detail as they remain data dependent and sees no urgency in delivering another cut. The broad risk sentiment is poor with Nikkei leading losses despite U.S.-China had held work level trade talks on Monday. AUD/USD is trading 0.57% lower at 0.6477, NZD/USD is trading 0.46% lower at 0.5699 while USD/CAD rises 0.05%. Else, EUR/USD is up 0.14% and GBP/USD is up 0.09%.
North American session
It was a subdued session with bonds closed for Columbus Day, though equities were open and firmer, if not fully erasing Friday’s losses. The USD maintained or marginally extended European gains, USD/JPY near 152.25 and EUR/USD near 1.1575. GBP/USD and AUD/USD were little changed, but USD/CAD advanced to 1.4035 from near 1.40, with AUD/CAD near .9150 from .9120.