Asia Summary and Highlights 9 Mar
Risk sours on explosive oil price
Asia Session
The catastrophic start of the week sees oil popping more than 10 USD/b as geopolitical tension persists. Trump's empty words did not help with the climb in oil price and fall in U.S. equities. USD/JPY is trading 0.44% higher at 158.44 despite a headline beat in labor cash earning at 3% y/y.
The broader equity market is poor after oil exploded higher, contributing to higher input prices. Nikkei is hit hard with once more than 7% of losses, U.S. major equity indexes also see no reprieve from their 2% dip. Other regional equities are not performing much better. Precious matter is also lower on strong USD bids. AUD/USD is trading 0.5% lower at 0.6995. NZD/USD is trading 0.15% lower at 0.5892 while USD/CAD slips 0.12%. Else, EUR/USD is down 0.53% and GBP/USD is down 0.63%. Most opening gaps in major FX pairs are yet to be closed.
European and North American sessions
Ahead of the US employment data, the USD was firmer in Europe on Middle East concerns and gains in oil. The US non-farm payroll fell by 92k In February and unemployment increased to 4.4% from 4.3%, though average hourly earnings were firm with a rise of 0.4%. A 0.2% decline in January retail sales. Unchanged ex autos with ex autos and gasoline sales up by 0.3% was in line with expectations. The USD slipped on the data but the initial move was quickly reversed, before USD slippage subsequently resumed. Oil continued to rise, moving above $90, with Trump demanding unconditional surrender from Iran. There was plenty of Fed talk, with Waller and Miran dovish, Daly balanced and Goolsbee Collins and Hammack hawkish.
EUR/USD ended little changed near 1.16 after slipping to 1.1550. EUR/GBP slipped to .8665 from .8690 as GBP/USD saw highs above 1.34. EUR/CHF fell to .9015 from .9060 on safe haven demand. USD/JPY had little direction in a range centered on 157.75 while AUD/USD was unable to fully erase European losses, though did find support below .70. Gains in oil helped USD/CAD fall to 1.3580 from 1.3660 as AUD/CAD fell to .9540 from above .96.