Asia Summary and Highlights 1 Oct
Tankan report show Japanese firms divided on how they see US tariff impact
Conflicting reports on China banning iron ore purchase from BHP dragged the Aussie
Asia Session
On Tuesday, we are seeing conflicting reports on China's ban of BHP iron ore. China Mineral Resources Group was reported to instruct related parties to halt purchase from the Australian BHP, one of the biggest mining company globally, which is later denied by Mysteel. However, the uncertainty is enough to keep a lid on the Aussie. AUD/USD is trading 0.17% lower at 0.6602 with a session low at 0.6589, NZD/USD is trading 0.14% higher at 0.5801 while USD/CAD slips 0.03%.
The Q3 Tankan report shows that Japanese firms are divided on the potential impact on U.S. tariffs. These large firms are also divided on business conditions on the dynamic of wage/price setting/consumption behavior. USD/JPY is trading 0.13% lower at 147.60. Else, EUR/USD is up 0.23% and GBP/USD up 0.16%.
North American session
The USD saw some early gains but ended slightly weaker after a session in which trading lacked any sustained direction, with no signs that a threatened imminent government shutdown would be avoided. USD/JPY remained slightly below 148 and EUR/USD close to 1.1740. USD/CAD found support near 1.39.
US data saw a modest 19k rise in August job openings but September consumer confidence fell to 94.2 from 97.8 with respondents less positive about the labor market. Fed’s Jefferson and Collins expressed fairly balanced views, seeing moderate risks on both sides of the mandate, though Goolsbee cautioned against front loading rate cuts.