Asia Summary and Highlights 18 Mar
Japanese Trade Balance beats
Asia Session
The February Japan trade beats estimate with export at 4.2% y/y and import at 10.2% y/y. Export to Europe grows, so as Asia, while exports to China and U.S. shrinks. It is generally positive for Japanese economic growth but hard to read into only one month of data. USD/JPY is trading 0.11% lower at 158.80 while JGB yields slide across the curve.
The broader risk sentiment seems to be improving despite Iran retaliates after U.S.-Israel killed the Iranian Intelligence Chief. U.S. major equities are higher while regional equities are performing individually. Precious metals also lost some grounds on less haven bids. AUD/USD is trading 0.15% higher at 0.7115. NZD/USD is trading 0.07% higher while USD/CAD rises 0.08%. Else, EUR/USD isu p 0.01% and GBP/USD is up 0.05%.
European and North American sessions
In a generally subdued session with the Wednesday FOMC decision approaching, the USD saw modest losses, with oil slightly firmer and early gains for equities fading. EUR/USD recovered from a dip below 1.15 to get close to 1.1550 while USD/JPY slipped from near 159.50 to 159. EUR/GBP and EUR/CHF had little direction. AUD/USD advanced from .7060 to .71, but USD/CAD was little changed near 1.37. There was little US data, though February pending home sales rose by 1.8%, slightly stronger than expected.