Asia Summary and Highlights 30 April

Asia Session

The Q1 Australian headline inflation stayed at 2.4% with trimmed mean dropped past 3% to 2.9% y/y. While headline is a tad higher than estimate, trimmed mean has tread lower within the target range. However, it is not sufficient to indicate an imminent cut from the RBA as they have their eyes on the mid range. AUD/USD is trading 0.44% higher at 0.6412, NZD/USD is also trading 0.08% higher at 0.5934 while USD/CAD is unchanged.

There has been little headlines from the tariff man on Wednesday with global equity indexes performing individually. There are also little movement in the U.S. and JGB yields while USD trading individually against majors. USD/JPY is trading 0.12% higher at 142.47. Else, EUR/USD is down 0.12% and GBP/USD is down 0.14%.

North American session

The USD took an early hit as the March advance trade deficit rose to a record $162.0bn from $147.8bn in February on a pre-tariff surge in imports, raising the risk of a decline in Q1 GDP. Subsequent data was also weak, a 288k decline in March job openings, and a fall in April consumer confidence to 86.0 from 93.9, but these had less market impact. UST yields fell, but equities were firmer, supported by reduced tariffs on imported auto parts. 

USD/JPY fell to 142 from 142.75 while EUR/USD moved above 1.14 from 1.1375. USD/JPY later saw a partial recovery to 142.35, while EUR/USD gains were largely erased. Despite resilient equities, AUD/USD slipped below 0.64. USD/CAD was choppy in a range centered around 1.3840.