Asia Summary and Highlights 21 May
Australia unemployment jumps to 4.5%
Asia Session
The Australian Labor market softens in April as we see rising unemployment, lower participation and employment change. It misses estimate with both full time and part time employment treading lower. AUD/USD fell by 0.38% to 0.7125. NZD/ISD is trading 0.15% lower while USD/CAD rises 0.13% with oil trading individually.
The Japan April Export has beaten estimate at 14.8% y/y with import also slightly above estimate. The overall trade balance is also a beat. Export growth in U.S. is strong but even stronger with China. USD/JPY is trading 0.05% higher at 158.98. Else, EUR/USD is down 0.03% and GBP/USD is down 0.02%.
North American session
Hopes for a deal between the US and Iran, with Al Arabiya News suggesting could come as early as Thursday, saw the USD, oil and UST yields slipping and equities rallying. There was not much response to the 20-year auction nor the FOMC minutes. The latter showed hawkish concerns over the easing bias went beyond the three hawkish dissenting votes seen at the meeting, though also suggested that easing could still be possible this year if the Middle East conflict was resolved soon.
USD/JPY fell back below 159 to 159.80 and EUR/USD moved back above 1.16 to 1.1635. EUR/GBP found support below .8650. AUD/USD advanced to .7150 with AUD/CAD also firmer as USD/CAD saw only marginal losses.