Asia Summary and Highlights 18 Aug

Asia Session

Despite Trump rolling out the red carpet for Putin, there does not seem to be much progress between the two countries. Zelensky and the EU leaders will be meeting with Trump on Monday, yet they seem to be fearful of Trump's change of stance. USD/JPY is trading 0.16% higher at 147.35 as sentiment broadly positive.

The broader risk sentiment is upbeat on Monday with little market moving headline after Trump-Putin's meet. U.S. three majority indexes are all in the green with regional equities outperforming. The USD is mostly softer against majors. AUD/USD is trading 0.2% higher at 0.6520, NZD/USD is trading 0.31% higher at 0.5940 while USD/CAD slips 0.13%. Else, EUR/USD is up 0.03% and GBP/USD is up 0.07%.

North American session

US July retail sales were in line with expectations with a 0.5% rise but with upward back revisions, and August’s Empire State Manufacturing Index was stronger than expected at 11.9 from 5.5. Unchanged July industrial production was in line with expectations but August’s preliminary Michigan CSI was weaker than expected at 58.6 from 61.7, with higher inflation expectations. 

The USD did not see much reaction to the data, maintaining a generally soft tone, before a modest correction in the afternoon, as UST yields picked up. EUR/USD was particularly firm rising to 1.17 while GBP/USD and AUD/USD were little changed after correcting from their highs. USD/CAD moved back above 1.3815 and USD/JPY moved back above 147. EUR/JPY advanced to 172.25 from 171.80.