Asia Summary and Highlights 3 Dec
Australia Q3 GDP +0.4% q/q
Asia Session
The Australian Q3 GDP has missed estimate at 0.4% q/q, dragged by weaker consumption. It was to an extent previewed by Tuesday's poor current account deficit and seems to persuade market participants that there maybe no more rate cut from the RBA as non seasonally adjusted y/y GDP remain at 2.1%. AUD/USD dipped as a knee jerk reaction by 20 pips but those losses are quickly erased and we see AUD/USD trading 0.24% higher at 0.6581. NZD/USD is trading 0.26% higher while USD/CAD rises 0.06%.
The USD is trading broadly lower on Wednesday against major. U.S. major equity indexes are upbeat while regional equities perform individually. The November service PMI for Japan continue to points toward higher input cost and could support a December hike from the BoJ. USD/JPY is trading 0.12% lower at 155.67. Else, EUR/USD is up 0.17% and GBP/USD is up 0.18%.
North American session
The USD tried the upper end of the daily range early in the session, but had slipped to the lower end of the range by the afternoon. A further late dip came as Trump referred to Kevin Hassett who was present with him as the potential Fed Chair. The bond reaction was modest, but the curve steepened marginally. Earlier Trump had stated he had made his decision on the Fed Chair but would not announce it until early 2026.
Trump’s comment lifted EUR/USD, which had seen an earlier low below 1.16, to 1.1625. EUR/GBP was firmer near .88 from .8785 but GBP/USD recovered from two dips below 1.32 and EUR/CHF was weaker at .9335 from .9345. USD/JPY was only marginally lower near 155.90 and AUD/USD gains were similarly modest. USD/CAD however fell to 1.3970 from above 1.40.