Asia Summary and Highlights 6 December

Asia Session

The October Household spending in Japan has beaten estimate and is growing at 2.9% m/m. While the y/y figure remains in negative territory, it is better than estimate. However, labor cash earning also arrived as expected at 2.6% but is the slowest in months, which may indicate more slowing in the rest of 2024. USD/JPY is trading 0.06% lower at 150, earlier losses are partially reversed along the falling JGB yields.

Regional sentiment in China and Hong Kong is outperforming the broad equity space on Friday's Asia session. There isn't much headline in the session and most flows seem to be preparing for the U.S. NFP in the U.S. session. AUD/USD is down 0.36% at 0.6429, NZD/USD is down 0.5% to 0.5872 while USD/CAD is up 0.06% on softer oil. Else, EUR/USD is down 0.14% and GBP/USD is down 0.12%.

European and North American sessions

After a quiet morning in Europe the USD lost some ground early in North America, EUR/USD rising to 1.0585 from 1.0530 and GBP/USD rising to 1.2755 from 1.2715. While the EUR and GBP gains were sustained, a similar early dip in USD/CAD was reversed, though both AUD and CAD ended slightly firmer. USD/JPY settled near 150 after having risen to 150.70 from 149.70.

There was not much news. US initial claims bounced to 224k from 215k but remain low and the data could have been influenced by seasonal adjustments in the Thanksgiving week.