Asia Summary and Highlights 12 Nov
RBA Deputy Governor Andrew Hauser said policy remains restrictive but under review
China to restrict U.S. military access with new rare-earth export system
Asia Session
USD/JPY remain elevated after multiple rounds of verbal intervention since the beginning of the month. After an undecided Tuesday, we are seeing the pair quickly broke monthly high on Wednesday's Asia session. Both the U.S. Treasury and JGB yields are lower in the far end. USD/JPY is trading 0.33% higher at 154.64.
Comments from RBA Deputy Governor Hauser reinforces market expectation of slow rate cut. China continues to play around export control and is reported to restrict U.S. military access with new rare-earth export system. U.S. major equity indexes looks good while regional equities are choppy. AUD/USD is trading 0.04% lower at 0.6524, NZD/USD is trading 0.08% while USD/CAD slips 0.05%. Else, EUR/USD is down 0.04% and GBP/USD is down 0.1%.
European and North American sessions
The GBP weakened after UK labor market data with GBP/USD falling to 1.3120 from 1.3170 and EUR/GBP rising to .88 from .8780. EUR/GBP largely sustained its gains in North America but GBP/USD erased its losses, returning to 1.3170 as the USD weakened.
USD weakness was largely a response to weekly ADP employment data, showing an average job loss of 11,250 in the four weeks to October 25, contrasting positive monthly data surveyed the week before. Equities however were firmer. EUR/USD picked up from 1.1575 to briefly clear 1.16 before correcting to 1.1590. USD/JPY fell to 153.75 from 154.15 before recovering to 154.10. USD/CAD was softer at 1.4010 from 1.4030 but AUD/USD was little changed around .6530.