Asia Summary and Highlights 24 July
Japan July flash Manufacturing PMI 49.2, Services PMI 53.9
JPY up across the board, USD is broadly stronger against riskier currencies
Asia Session
USD/JPY resume its downward traction on Wednesday after a brief relief rally in early Asia to challenge the 156 figure. U.S. Treasury Yields are slipping in the front while JGB yields in the green. The July Flash Service PMI came in stronger than June, which may have lend minor support to JPY strength as it could suggest higher inflationary picture. USD/JPY is now trading 0.51% lower at 154.79.
The USD is trading broadly stronger against majors on Wednesday except against the JPY. Major equity indexes are also in the red with Chinese equities closing the gap and squeeze out some gains. AUD/USD is trading 0.39% lower at 0.6590, NZD/USD led the losses by 0.62% to 0.5919 while USD/CAD rose 0.07% as oil slips thirty cents. Else, EUR/USD is down 0.07% and GBP/USD is down 0.15%.
North American session
It was a quiet session with little movement in FX or equities. There was little reaction to a weaker than expected 5.2% decline in June US existing home sales, though UST yields were slightly lower.
USD/JPY lost a little more ground to 155.65 while EUR/USD stabilized near 1.0850, seeing EUR/JPY fall below 169. The commodity currencies lost some ground, AUD/USD falling to .6615 and USD/CAD rising to 1.3775.