Asia Summary and Highlights 15 Jul

Asia Session

We have a slate of Chinese data on Tuesday where we see Q2 GDP beats estimate but remain below Q1. Retail sales are disappointing with industrial production stays supported. Chinese equites are undermined while regional equities are in the green. U.S. major equity indexes, especially NASDAQ, have been driven higher on news that NVidia will be allowed to sell a certain type of chip to China. AUD/USD is trading unchanged at 0.6545, NZD/USD is trading 0.06% higher at 0.5976 while USD/CAD slips 0.05%.

USD/JPY is fast approaching June 23 high at 148.02. USD has been recovering steadily in July when JPY lacks support from any BoJ commitment and the potential shake up of Japanese government after the weekend election. USD/JPY is trading 0.02% lower at 147.66 after touching a session high of 147.89. Else, EUR/USD is up 0.12% and GBP/USD is up 0.06%.

North American session

The USD was generally stronger with equities resilient to tariff concerns and UST yields seeing modest gains. Oil slipped as Trump threatened tariffs on Russia’s trade partners if there was no cease fire in Ukraine in 50 days, though the NOK largely sustained European gains. EUR/USD was sold ahead of 1.17 to 1.1670 while USD/JPY advanced to 147.75 from 147.25. EUR/GBP was firmer at .8680 from .8660. AUD/USD fell to .6550 from .6570 while USD/CAD advanced to 1.37 from a low of 1.3670.