Asia Summary and Highlights 13 Aug

Asia Session

The Australian Q2 2025 Wage Price Index 0.8% q/q and 3.4% y/y. The wage growth remains steady despite choppy employment figure for the restraint in labor capacity persists. It echoes with the RBA's meeting statement. AUD/USD is trading 0.05% higher at 0.6532, NZD/USD is trading 0.07% higher at 0.5959 while USD/CAD gains 3 pips.

The Japan July PPI bangs in estimate and suggest moderate inflationary pressure.  It is also reported that China hits Canadian canola with 75.8% tariffs, though the broad risk atmosphere does not seem to be affected. Canada looks like to be a major loser, taking a beating from both China and U.S.. Regional equities are outperforming U.S. major equity indexes. USD/JPY is trading 0.16% higher at 148.07. Else, EUR/USD is up 0.07% and GBP/USD is up 0.02%.

North American session

US CPI was as expected at 0.2% overall, 0.3% ex food and energy, though the latter was on the firm side at 0.32% before rounding. The acceleration was led by services, notably air fares, rather than tariffed goods. Subsequent Fed talk was far from dovish, with Barkin stating the balance of risks was still unclear and Schmid saying that restrictive policy was appropriate for the time being. Markets took more notice of a threat from Trump to sue Chairman Powell over the cost of Fed building renovations, which lifted long end yields and helped to extend USD losses, though equities were firm. 

USD/JPY fell to 147.75 from 148.50 while EUR/USD advanced to peak near 1.17 from 1.16 before correcting to 1.1675. EUR/GBP reversed most of its European losses recovering to .8650. AUD/USD rose to .6530 from .6485 while AUD/CAD came close to .90 from .8950.