Asia Summary and Highlights 23 Sep
Japanese PM contender Koizumi says must be mindful of need for fiscal discipline
Asia Session
As the LDP leadership election coming in less than two weeks, the contenders are beginning their show. Most contenders are tilted towards more easing with top contender Takaichi said extra tax revenues should be used to ease the rising cost of living and that bond issuance may be needed if necessary while Koizumi arguing that new spending should be funded by higher revenues and cuts to wasteful outlays. USD/JPY is trading 0.03% higher at 147.75.
Regional equities in China and Hong Kong are underperforming Japanese equities while U.S. equities performing individually. USD is trading broadly higher against majors as market participants wait for Powell's speech. AUD/USD is down 0.15% at 0.6589, NZD/USD is trading 0.29% lower at 0.5851 while USD/CAD rises 0.05%. Else, EUR/USD and GBP/USD is down 0.01%.
North American session
The USD continued to see modest losses in subdued North American trading. There was no significant data and no clear reason for the USD slippage, with UST yields slightly higher. Fed’s Miran was dovish but Bostic, Musalem and Hammack were all cautious about further easing.
EUR/USD reached 1.18 from 1.1780 and USD/JPY slipped to 147.70 from 147.90. EUR/GBP advanced to .8730 from .8720. AUD/USD reversed an early dip to reach 0.66. USD/CAD was however slightly firmer near 1.3825 after an early dip below 1.38 as AUD/CAD rose to .9120 from .91.