Asia Summary and Highlights 13 Nov
Australian October unemployment rate 4.3%
U.S. House votes to reopen the government
Trump has signed the bill to reopen the U.S. government
BOJ Governor Ueda told parliament that underlying inflation is “gradually accelerating” toward the 2% target
Asia Session
The broad risk sentiment remain choppy but is seeing signs of improvement as U.S. House votes to reopen the government and Trump signed. U.S. major equity indexes are all in the green while HSI led losses. The October Australian labor report is solid with unemployment rate tread lower from 4.5% to 4.3% with participation rate unchanged. Headline employment change also beats at 42.2K with strong full time employment. AUD/USD is trading 0.24% higher at 0.6557 while NZD/USD slipped 0.23% to 0.5653 and USD/CAD unchanged.
The USD/JPY is capped by 155 for now after testing monthly high pips above the figure. BOJ Governor Ueda told parliament that underlying inflation is “gradually accelerating” toward the 2% target. While it seems like an oxymoron, it is Ueda's way of telling the government inflationary pressure is there to stay. USD/JPY is trading 0.07% higher at 154.90. Else, EUR/USD is done 0.06% and GBP/USD is done 0.09%.
North American session
Awaiting a House vote to reopen the government, there was little news other than some hawkish comments from Fed’s Bostic who argued against further easing. USD/JPY gains briefly reached 155 before a correction to 154.75. EUR/USD gains fell just short of 1.16 and a correction to 1.1585 followed. EUR/JPY remained firm above 179. EUR/GBP peaked just below .884 before correcting to near .8825. EUR/CHF was weaker near .9240. USD/CAD fell to 1.40 from 1.4020. Bank of Canada minutes from October 29 reinforced a message that further easing should not be expected. AUD/USD saw only marginal gains, peaking near .6550.