Asia Summary and Highlights 13 May
Australian Q1 wage price index bangs in estimate
Asia Session
Australian Q1 wage price index bangs in estimate at 3.3% y/y, slightly lower than the 3.4% in Q4 2025. It came at no surprise with the strength in Australian labor market only moderating but little signs of slowing. Major equity indexes are recovering the overnight losses while precious metals are performing individually. AUD/USD is trading 0.09% lower at 0.7233. NZD/USD is also 0.22% lower while USD/CAD is unchanged with both Brent and WTI lower.
It is reported that Iran has rebuilt access to 30 of 33 Hormuz missile sites. While the assessment indicates Iran's capability to control the Strait of Hormuz, it is also a convenient excuse for the U.S. to resume military operation after Trump lost his patience in negotiation. USD is receiving steady haven bids and seen driving USD/JPY close to May high at 157.94. USD/JPY is trading 0.07% higher at 157.72. Else, EUR/USD is down 0.04% and GBP/USD is down 0.06%.
North American session
US April CPI was as expected at 0.6%, but with the before rounding gain at 0.64% the yr/yr rate at 3.8% was higher than expected. Core CPI rose by 0.4%, slightly higher than expected but with the before rounding gain being 0.38% the surprise was marginal. Reaction to the data was modest but the USD picked up in the morning before correcting in the afternoon. The Senate confirmed Kevin Warsh as a Fed Governor, setting the stage for a vote to confirm him as Chairman.
Middle East tensions kept oil firm. USD/JPY was little changed but off its high near 157.55 while EUR/USD was little changed but off its lows near 1.1750. EUR/GBP stabilized near .8675 with pressure on PM Starmer persisting. The USD’s afternoon correction saw AUD/USD edge up to .7240. and USD/CAD slip below 1.37.