Asia Summary and Highlights 9 Apr

Asia Session

USD/JPY knocked on the next figure in early Asia as the USD is trading broadly stronger. Japan finance minister Suzuki says excess FX volatility is undesirable but does not say to be rushing towards an actual intervention, nor showing the market his urgency in curbing the JPY's weakness. U.S. Treasury Yields are softer across the curve while JGB yields rose and see USD/JPY retracing earlier gains to trade 0.06% higher at 151.87. 

Risk sentiment is generally positive on Tuesday with regional equities in Hong Kong and Japan performing, so as U.S. major equity indexes except Dow Jones and Chinese equities. Commodities are also performing well, which supported the Antipodeans against broad USD strength. AUD/USD is trading 0.06% higher at 0.6609, NZD/USD up 0.17% at 0.6042 while USD/CAD rose 0.04%. Else, EUR/USD is down 0.02% and GBP/USD is up 0.01%. 

North American session

The US session saw little fresh news or movement in equities or UST yields, though the USD was generally softer. GBP/USD saw the strongest gains, rising from a low of 1.2615 to 1.2660, while EUR/USD was not far behind, rising from near 1.0820 to near 1.0860. AUD/USD moved above .66 while USD/JPY slipped by around 15 pips to 151.80.

The New York Fed’s survey on consumer inflation expectations was fairly neutral, stable on a 1-year view, higher on a 3-year view and lower on a 5-year view. Fed dove Goolsbee saw the recent jobs report as quite strong but said that unemployment would eventually rise if rates stay high.