Asia Summary and Highlights 15 October

Asia Session

The regional sentiment has started Tuesday on a mixed note.  Nikkei is leading with 1% gains while Chinese equity indexes and HSI in the red. U.S. three major equity indexes are performing individually but not far from session open. Headline crossed the wire that China will be reinforcing tax on ultra riches’ oversea investment gains, combined with soft Chinese export, the Yuan reached its monthly low and dragged the AUD/USD 0.22% lower at 0.6711, NZD/USD also 0.22% lower at 0.6082 while USD/CAD is up 0.08% on soft oil.

The USD/JPY is once again close to 150 but has paused its advance on Tuesday.U.S. Treasury Yields are lower across the curve while JGB yields advance. USD/JPY dipped to 149.43 before rebounding to trade at 149.68 now. Else, EUR/USD is down 0.15% and GBP/USD is down 0.11%.

North American session

In a quiet session with bonds closed for Columbus Day the USD opened firm but USD/JPY could not quite reach 150 while EUR/USD nudged marginally below 1.09. The USD saw a brief dip after equities opened firm though this only held for AUD/USD, which rose to .6720 from .67 and GBP/USD, which rose to 1.3050 from 1.3030. 

The only news of the day was afternoon comments from Fed’s Waller, who said the Fed should proceed with more caution on rate cuts. The USD ticked up briefly on the comments but USD/JPY again failed to break 150 and then moved down to 149.75. EUR/USD edged back above 1.09 and a move in USD/CAD above 1.38 was also corrected.