Asia Summary and Highlights 29 January

Asia Session

The Australia headline Q4 CPI came in lower at 2.4% y/y, stays below the 3% upper bound of RBA target range. The more important trimmed mean treads lower from 3.5% in Q3 to 3.2% in Q4. This points toward the likelihood of RBA easing earlier than mid 2025 as CPI cools. The Aussie fell on the release and see AUD/USD is down 0.2% to 0.624, NZD/USD is down 0.05% to 0.5663 while USD/CAD also slipped 0.05%.

While the 2024 December BoJ meeting sounded caution about inflationary development, they seemed to be overcome in January. We did not hear anything from tariff man today and thus the market seems to be relatively quiet. Both the U.S. Treasury and JGB yields are lower and see USD/JPY trading 0.15% lower at 155.23. Else, both the EUR/USD and GBP/USD is up 0.08%.

North American session

A quiet session saw EUR/USD in a narrow range near 1.0430 with GBP/USD. AUD/USD and USD/CHF all showing a similar lack of direction. USD/JPY did pick up above 155.50 after finding support near 155. USD/CAD saw a dip to 1.4370 from above 1.44 but this was largely reversed. 

December US durable goods orders fell 2.2% on aircraft but a 0.3% rise ex transport was in line with consensus. January consumer confidence fell to 104.1 from 109.5 but December was revised up from 104.7. January data saw labor market perceptions deteriorate and inflation expectations firmer.