Asia Summary and Highlights 18 Dec
New Zealand Q3 GDP y/y 1.3%, q/q 1.1%
Asia Session
The Q3 New Zealand GDP has reverted to growth at 1.3% y/y and 1.1% q/q from a contracting Q2. While the Kiwi initially got a few pips higher on the release from quarterly beat, the as expected y/y and RBNZ's dovishness brings them back to reality. NZD/USD is trading 0.11% lower at 0.5767, the AUD/USD is unchanged while USD/CAD slips 0.06%.
As USD/JPY lingers around recent high, we are hearing Japan Chief Cabinet Secretary Kihara saying the government is closely watching market developments. And once again, such jawboning is fruitless with all eyes on BoJ decision on Friday. USD/JPY is trading 0.06% higher at 155.73. Else, EUR/USD is up 0.03% and GBP/USD is down 0.03%.
North American session
GBP/USD reversed European losses returning to pre-CPI levels around 1.3375. EUR/GBP saw only a modest correction from its highs, to .8780, as EUR/USD rose to 1.1745 from 1.1710. USD/JPY saw only marginal gains to above 155.50 but AUD/USD slipped to near .66 from .6625 as equities came under pressure. USD/CAD gains failed to breach 1.38. There was limited news. Fed’s Waller was dovish but not aggressively so.