Asia Summary and Highlights 17 Sep
Still waiting for FOMC
Asia Session
The August Japan trade data has come in less worse than expected. While export to the U.S. slumped more than 10% y/y (headline -0.1%), the deficit in trade balance has been narrowed by lower energy prices, which shows import to contract by 5.2% y/y. USD/JPY is trading 0.06% lower at 146.38 as JGB outperform U.S. Treasury Yields.
Market participants are still waiting for FOMC with anticipation a 25bps cut. Global equities are performing individually with U.S. & Japan major equity indexes lagging and regional equities outperforming in China and Hong Kong. AUD/USD is trading 0.15% lower at 0.6675, NZD/USD is trading 0.12% lower at 0.5981 while USD/CAD rises 0.07%. Else, EUR/USD is down 0.07% and GBP/USD is up 0.01%.
North American session
US data, with a 0.6% rise in August retail sales and to a lesser extent a 0.1% rise in August industrial production, was on the firm side of expectations, but generated only a brief reaction before a negative USD tone resumed. Stephen Miran was sworn in as a Fed governor, adding a likely dovish vote.
USD/JPY fell below 146.50 from 147.10 and EUR/USD advanced to 1.1860 from 1.1.1810. EUR/GBP was stronger near .8690 but EUR/CHF was weaker near .9330.
Canadian CPI at 1.9% yr/yr in August from 1.7% was slightly softer than expected. USD/CAD at 1.3750 from 1.3760 was slightly softer but AUD/CAD advanced to .9185 from .9170.