Asia Summary and Highlights 12 Aug

Asia Session

As per forecast, RBA cuts cash rate by 25 bps to 3.60%, citing easing labor market and clarity on U.S. tariffs. The RBA seems to be happy about private demand while stays vigilant on consumption recovery. Their forward guidance remain data dependence and we expect another cut in November. AUD/USD is currently trading 0.19% lower at 0.6501 after dipping to 0.6499 as a knee jerk reaction. NZD/USD is also 0.1% lower at 0.5932 while USD/CAD is unchanged.

It is official China got some TACO as Trump confirmed he extends China tariff pause for another 90 days. This is widely expected as both sides continue to commit to negotiation for trade terms and Trump's current focus is on Russia.  USD/JPY is trading 0.09% higher at 148.27. Else, EUR/USD is up 0.02% and GBP/USD is down 0.03%.

North American session

In a session with no significant data and limited moves in bonds and equities the USD had a stronger tone. USD/JPY gains extended above 148, gaining momentum in he afternoon. EUR/USD saw lows below 1.16 while GBP/USD fell to 1.34 before seeing modest corrections. EUR/GBP was softer at .8645 but EUR/CHF was stronger at .9430. AUD/USD found support near .65 while USD/CAD peaked near 1.38.  Trump stated gold imports would not face tariffs and extended the US-China tariff truce for 90 days.