Asia Summary and Highlights 16 April

Asia Session

Trade concern has returned to market participants attention. We are seeing the major U.S. equity indexes opening lower and Gold jumping to another high. Government bonds are also receiving a generous bid in the start with USD trading broadly lower. USD/JPY is trading 0.49% lower at 142.54.

The global risk sentiment turns sour on Wednesday as trade concern resurface along Chinese tough statement against U.S. tariffs. It is quite predictable for the Chinese government has long known for their "face" and will not be seen softening their fighting stance. Whether it is their true intention or not, market participants are taking cues from the less possibility of an imminent easing of U.S.-China relationship and turn sour on risk asset. AUD/USD is trading 0.04% lower at 0.6342, NZD/USD outperformed to trade 0.3% higher at 0.5917 while USD/CAD 0.17%. Else, EUR/USD is up 0.59% and GBP/USD is up 0.24%.

North American session

Equities and most FX pairs saw little movement. Exceptions were a weaker EUR/USD, which slipped below 1.13, and a rise in USD/CAD to 1.3965 from 1.3875. The latter followed a weaker than expected March Canadian CPI of 2.3% yr/yr from 2.6% in February, increasing perceived risk of a BoC easing on Wednesday. Two dips in USD/JPY below 143 were erased. 

US data showed a less weak April Empire State manufacturing index of -8.1 from -20.0, but 6-month expectations for activity turned negative and price indices accelerated in response to tariffs.