Asia Summary and Highlights 17 July

Asia Session

The Q2 New Zealand CPI has come in lower at 0.4% q/q and 3.3% y/y as suggested by RBNZ last week. The RBNZ's own sectoral factor model also shows a moderation to 3.6% from 4.2% y/y. The Kiwi is trading stronger as CPI remains above target range and selling the fact after expectation built up after RBNZ's meeting. NZD/USD is up 0.37% at 0.6070, AUD/USD rose 0.08% to 0.6739 as regional equities perform individually while USD/CAD is unchanged.

USD/JPY continues to consolidate within a small range. U.S. Treasury Yields are outpacing JGB yields on Wednesday's Asia session and see USD/JPY up five pips to 158.36. Else, EUR/USD is up 0.06% and GBP/USD up 0.02%.

North American session

The USD bounced on stronger than expected June retail sales data but the rise was largely erased by the end of the session leaving the USD little changed. EUR/USD fell from 1.09 to a low of 1.0872 before returning to 1.09. USD/JPY rose from near 158.30 to a high of 158.86 before slipping back to 158.40. There were similar moves elsewhere.

US retail sales were unchanged overall but up 0.4% ex autos and by a strong 0.8% ex autos and gasoline. Comments from Fed’s Kugler seeing rate cuts later this year may have assisted the USD reversal but the move was underway well before her comments. Canadian CPI was in line with expectations, slipping back to 2.7% yr/yr reversing an increase to 2.9% seen in May.