Asia Summary and Highlights 12 Mar
Oil rises on Iran attacks
China has reportedly called for immediate ban on fuel exports for March
Asia Session
In late NA/early Asia session, we have headlines crossing the wire that multiple oil tankers have been attacked Iran. It once again ignited fear of physical disruption and see oil price jumping 6 dollars higher. U.S. equities are also rotating lower, so as regional equities. AUD/USD is trading 0.36% lower at 0.7126 as precious metal did not survive the slaughter. NZD/USD is also 0.22% lower while USD/CAD slips 0.03%.
Geopolitical tensions reheat with oil tanks being attacked crossing the Strait and Arab oil facilities under drones attack. The USD once again received more haven bids and see USD/JPY breaking 159 figure. It is surprising we haven't heard anything from the Japanese government in terms of verbal intervention. USD/JPY is trading 0.08% higher at 159.05. Else, EUR/USD is down 0.19% and GBP/USD is down 0.29%.
European and North American sessions
US CPI was in line with expectations at 0.3% overall, 0.2% ex food and energy, leaving focus on the Middle East. Despite Trump stating that the war would end soon ongoing military Iranian actions in the Strait of Hormuz suggested that an ending of military strikes on Iran might not bring a return the pre-conflict situation, putting upward pressure on oil prices and the USD.
USD/JPY rose to near 159 from lows below 158 while EUR/USD fell to 1.1570 from a high of a 1.1645. EUR/GBP was weaker at .8625 from .8650. Losses for the commodity currencies were relatively modest, USD/CAD meeting resistance at 1.36 and AUD/USD finding support around .7150.