Asia Summary and Highlights 21 Nov
Japan November National Headline CPI 3.0%
Asia Session
All three item of the November National CPI for Japan is above 3%, with ex fresh food & energy at 3.1%. The inflationary picture continues to be supportive for another rate hike from the BoJ as underlying inflation remains stubborn. Governor Ueda has made his stance clear by suggesting inflation target has been sustainably met. But the political resistance from PM Takaichi may induce the BoJ to water down, again, by suggesting more confirmation from the next spring wage negotiation. USD/JPY is trading 0.15% lower at 157.20.
Regional equities are following the overnight momentum to slump lower. U.S. major equity indexes are trying to claw back some gains but have not witnessed any trigger for a huge bounce yet. USD is trading broadly lower against major so far on Friday. AUD/USD is trading 0.14% higher at 0.6449, NZD/USD is trading 0.31% higher at 0.5600 while USD/CAD slides 0.06%. Else, EUR/USD is is up 0.11% and GBP/USD is up 0.16%.
North American session
September’s US non-farm payroll was stronger than expected with a rise of 119k, though offset by 33k in downward back month revisions, a rise in unemployment to 4.4% from 0.3%, and a slightly below consensus 0.2% increase in average hourly earnings. UST yields and the USD slipped on the data. Equities opened firmer, but tuned negative later in the session.
The USD slipped on the data but USD/JPY’s dip was quickly reversed, and the pair settled near pre-data levels around 157.65. EUR/USD better sustained its gains, rising as far as 1.1550 from 1.1515 before correcting to 1.1530. EUR/GBP was little changed near .8815 after erasing a dip below .88. The reversal in equities left the commodity currencies weaker, AUD/USD near .6450 after briefly touching above .65 and USD/CAD near 1.41 after a brief dip to 1.4040 on the data. This left the USD little changed overall.