Asia Summary and Highlights 9 Jun

Asia Session

The Q1 Japan GDP has been revised higher to -0.2% y/y. While it remained in contraction, the revision has shown private consumption gains 0.1% from 0%, which is a welcoming sign. The BoJ will likely got the green light to hike once the trade conflict with U,S. being settled as the current inflationary pressure is piling and the virtuous cycle of wage/consumption begins. USD/JPY is trading 0.3% lower at 144.37 with JGB outperform U.S. Treasury in yields.

While China remain in deflation in May, the slightly better than expected results are seeing regional equities to be more upbeat than U.S. equities. In the trade front, there is a 34.5% y/y drop of Chinese export to the U.S. But the still solid trade balance seems to be providing more optimism for market participants. AUD/USD is trading 0.3% higher at 0.6512, NZD/USD is 0.32% higher at 0.6036 while USD/CAD slips 0.08%. Else, EUR/USD and GBP/USD is up 0.22%.

North American session

Equities and UST yields both picked up on a slightly stronger non-farm payroll increase of 139k, even with 95k in net negative revisions. Average hourly earnings saw an above trend 0.4% increase and unemployment was unchanged at 4.2%. USD gains were largely felt in USD/JPY, which saw highs above 145 from 144.25. EUR/USD saw lows below 1.14 from marginally above, but settled near the figure. EUR/GBP was little changed but EUR/CHF edged lower. 

Canadian employment saw an unexpected rise of 8.8k though unemployment rose to 7.0% from 6.9%. USD/CAD saw little reaction to the data but eventually edged marginally higher to 1.37. AUD/USD was little changed, bringing marginal gains in AUD/CAD.