Asia Summary and Highlights 7 Jan
Australian November headline CPI 3.4% y/y, Trimmed Mean 3.2% y/y
Asia Session
The Australian November headline CPI arrived at 3.4% y/y with Trimmed Mean 3.2% y/y. While it remained above 3%, we do not believe it is a number hot enough for the RBA to consider hiking rates in February. However, it does justify further holding rates at current level for the RBA. AUD/USD is trading 0.16% higher at 0.6749, NZD/USD is trading 0.06% lower at 0.5781 while USD/CAD is unchanged.
USD is trading lower on Wednesday's Asia session. U.S. President Donald Trump said interim authorities in Venezuela would hand over 30–50 million barrels of oil to the United States and has dragged oil price lower. U.S. Treasury yields are performing individually while JGB yields are also lower from Tuesday's close. USD/JPY is trading 0.15% lower at 156.35. Else, EUR/USD and GBP/USD are up 0.04%.
North American session
In a session of limited news the USD was generally a little stronger, EUR/USD falling to 1.1690 from 1.1710, and USD/JPY rising to 156.60 from 156.40. EUR/GBP was little changed as GBP/USD fell to 1.35 but EUR/CHF advanced to .93 from .9280. USD/CAD advanced to 1.38 from 1.3770 but AUD/USD was able to make modest gains, advancing to .6740 from .6725, as AUD/CAD reached .93 from .9250.