Asia Summary and Highlights 25 Nov
Japan PM Takaichi says she spoke with Trump on a call
Chinese President Xi says to enhance energy partnership with Russia
Asia Session
The USD/JPY is in consolidation after firm words from Japan FM last Friday. The pair retreated from high of 157.89, in fear of an actual intervention from the BoJ. JPY also gained some traction from sour risk atmosphere. On Tuesday, we are seeing the pair moving lower, along broad USD weakness and red U.S. major equity indexes. Japan PM Takaichi says she spoke with Trump on a call but there is lack of detail, only mentioned they talk about U.S.-China relationship. It seems to be related to the escalated tension recently between U.S.-China. USD/JPY is trading 0.07% lower at 156.80 as JGB outperform U.S. Treasury yields.
The broader risk sentiment remains undecided with regional equities outperforming U.S. counterpart. On the geopolitical front, we are hearing Chinese President Xi says to enhance energy partnership with Russia, in response to U.S. sanctions. AUD/USD is trading 0.13% lower at 0.6456, facing some resistance after two days of rebound. NZD/USD is trading 0.21% lower while USD/CAD rises 0.1%. Else, EUR/USD is down 0.07% and GBP/USD is down 0.05%.
North American session
In a subdued session USD/JPY rose to a high of 157.19 before correcting back to around 156.80. EUR/USD peaked at 1.1550 before correcting to 1.1525. EUR/GBP erased earlier gains moving back below .88. AUD/USD reversed marginal European losses, rebounding to .6465 but USD/CAD maintained its marginal European gains, holding above 1.41.
News was limited. Fed’s Waller reiterated his support for a December easing while November’s Dallas Fed manufacturing index slipped to -10.4 from -5.0.