Asia Summary and Highlights 11 November

Asia Session

While there is little news from the BoJ's October Summary of Opinion, market participants seem to have focused on the division of future rate hike timing, rather than the highlight on weak JPY impact. USD is performing broadly stronger against major with the front end of U.S. Treasury Yields outperforming the far end but gains have dissipated against the Antipodeans. USD/JPY is trading 0.65% higher at 153.55.

The weaker than expected Chinese October CPI points toward softer consumer demand. Regional equities opened lower from that weekend headline and was double teamed by the U.S. Department of Commerce’s letter to TSMC on export restrictions to China. As session progress, most losses in Chinese equity indexes were once erased while HSI remain in the red. AUD/USD is up 0.18% to 0.659, NZD/USD is 0.14% higher at 0.5976 while USD/CAD is up 0.12% on oil down half a dollar. Else EUR/USD and GBP/USD are down 0.03%. Most major pairs opened individually from the Friday close but has since closed the gap at least once in the session.

North American session

The USD was stronger in North American trade, assisted by Michigan CSI data and Trump asking protectionist Robert Lighthizer to run trade policy. USD/JPY, after finding a base near 152.25 recovered to 152.75 but remained down on the day. EUR/USD fell to near 1.07 from near 1.08. The USD also advanced versus the GBP and CHF but EUR/GBP and EUR/CHF were weaker. AUD/USD was particularly weak falling to .6570. USD/CAD rose above 1.39 but CAD was relatively resilient after a respectable Canadian employment report.

November’s Michigan CSI, surveyed before the election, rose to 73.0 from 70.5 with the rise fully on future expectations. October Canadian employment rose by a moderate 14.5k but full time and private sector work outperformed, unemployment was unchanged at 6.5% and wages were stronger.