Asia Summary and Highlights 6 Jan
Risk sentiment up beat
Japan’s monetary base continue to fall
Asia Session
The broader risk sentiment is upbeat on Tuesday as we see both regional and U.S. major equity indexes all in the green. HSI is leading with almost 2 percent gains and one percent for Nikkei and CSI. Metals are also performing in the Aisa session. And is seen supporting the AUD/USD to trade 0.17% higher at 0.6726, NZD/USD is also trading 0.18% higher while USD/CAD slides 0.07%.
USD/JPY was edging north in the early Asia hours. But as the Japan monetary base numbers were released, it caught market participants' concern it is falling. 2yr JGB yields are still hovering at level not seen in decades despite opened lower on Tuesday while 10yr JGB yields are rising strongly. USD/JPY is trading 0.05% higher at 156.41 after touching a session high of 156.79. Else, EUR/USD is up 0.06% and GBP/USD is up 0.04%.
North American session
The USD and UST yields were generally softer, the moves assisted by an unexpected if modest decline in December’s ISM manufacturing index to 47.9 from 48.2. USD/JPY slipped to 156.25 after meeting resistance near 157 while EUR/USD rose to 1.1725 after early slippage to 1.1660. EUR/USD still underperformed GBP/USD, which advanced to near 1.3550, as EUR/GBP fell to .8660 from .8680, extending European losses from .87. AUD/USD was also firm at .6715 despite USD/CAD being little changed, as AUD/CAD rallied to .9240 from .92.