Asia Summary and Highlights 15 April

Asia Session

As JPY continues to gain, we are hearing some more jawboning from the Japanese FM, Kato. While it is very unlikely they will want to weaken JPY, any vigorous movement in a short period of time is always not favorable. U.S. Treasury Yields are lower across curve while JGB yields closing the opening gap. USD/JPY is trading 0.11% higher at 143.16.

The RBA minutes have provided cues of a potential May cut as they forecast trimmed mean CPI to tread below 3% y/y soon. However, it is worth to mention they also highlighted tariff risk and the subsequent inflationary pressure could tilt the RBA towards more cautious easing cycle. The broad risk sentiment is undecided for now but seems to be remain hopeful. AUD/USD is trading 0.48% higher at 0.6357, NZD/USD outperforms to trade 0.78% higher at 0.5923 while USD/CAD slips 0.11%. Else, EUR/USD is up 0.03% and GBP/USD is up 0.17%.

North American session

The USD saw some early gains but these largely faded, leaving the USD roughly where it was at the start of the session. Equities opened firmer on Trump’s exclusion of certain Chinese-built predicts from tariffs, but the gain was not significantly extended. UST yields however fell significantly. Stable long term inflation expectations in a New York Fed consumer survey despite a firmer 1-year view, and dovish comments from Fed’s Waller, suggested he would ease to support economic growth despite higher inflation if tariffs remained high, helped fuel the UST rally. 

USD/JPY was little changed near 143. EUR/USD was slightly weaker near 1.1365 though EUR/GBP and EUR/CHF were also weaker near .8610 and .9240 respectively. AUD/USD was firm rising to near .6340.