Asia Summary and Highlights 10 Mar
Japan Q4 annualized GDP revised higher to 1.3%
Asia Session
After a volatile Monday, market is so far calmer on Tuesday. Major FX is rangebound while U.S. major equity indexes close to unchanged and regional equities outperforming. Precious metal is also higher in the Asia session, AUD/USD is trading 0.19% lower at 0.7063, NZD/USD is trading 0.36% lower while USD/CAD rises 0.02%. Oil is still being capped below 90 USD/b for now.
The Q4 annualized GDP is revised higher to 1.3%. Private consumption has improved and shows stronger adaption of consumption behavior amid higher prices. USD/JPY is trading 0.11% higher at 157.81 with JGB yields performing individually. Else, EUR/USD is down 0.14% and GBP/USD is down 0.09%.
European and North American sessions
Focus was almost entirely on the Middle East and the price of oil, which after surging to almost $120 reversed back to around $85 assisted first by G-7 finance ministers stating that they could take action to control prices, notably releasing oil stockpiles, and later after comments from Trump suggesting the war could be over soon, together with a report that he might further ease sanctions on Russian oil.
Markets, including equities and UST yields, reflected movements in oil, as did the USD. USD/JPY, after slipping from a 158.90 high, saw a late break below 158 where support had earlier been found. EUR/USD gains from near 1.15 stalled near 1.16 before breaking above on Trump’s comments. EUR/CHF saw a brief dup below .90 before bouncing to .9035 but EUR/GBP was slightly softer near .8650 as GBP advanced from below 1.33 to above 1.34. AUD/USD also moved steadily higher to .7070, up over a big figure from the low. AUD/CAD was also firmer at .96 after early CAD gains on higher oil prices were corrected.