Asia Summary and Highlights 28 March

Asia Session

Over the weekend, we heard from Trump that he is not happy with Putin and suggest more tariff. As the key date approaches this week, market will be anxious about such remarks. Risk asset slumped with oil initially opened higher before retracing its gains. Both the U.S. Treasury and JGB yields are lower and see USD/JPY down 0.43% to 149.17 with a session low at 148.72.

Market participants have kept their eyes on Trump's latest tariff update as it already shook the market in the early Asia hours. The Australian March private inflation survey came in at 2.8% y/y, suggesting an uptick from the previous month. The broad risk sentiment remain soft and see regional equities falling more than U.S. equities. AUD/USD is down 0.12% to 0.6280, NZD/USD is also down 0.12% to 0.5709 while USD/CAD is unchanged. Else, EUR/USD is up 0.13% and GBP/USD is up 0.14%.

North American session

US data fuelled inflationary fears, with a 0.4% rise in the February core PCE price index and an upward revision to 5-10 year Michigan CSI inflation expectations to 4.1% from 3.9%. Personal income with a 0.8% rise exceeded a 0.4% rise in spending but the Michigan CSI headline was revised down to 57.0 from 57.9.  Equities saw a sharp decline, and UST yields fell, despite the inflationary warnings. 

The USD slipped, USD/JPY moving below 150 from 150.80, and EUR/USD advancing to 1.0825 from a low of 1.0765, more than fully erasing European losses. EUR also advanced versus GBP and CHF, with GBP/USD and USD/CHF lacking clear direction, as did a marginally softer AUD/USD. USD/CAD was little changed near 1.4320, a dip to a low of 1.4277 after Trump described a conversation with Canadian PM Carney as productive being reversed. Trump later stated he would follow through with tariffs on Canada.