Asia Summary and Highlights 25 June
Australian May unemployment rate 4.4%
BoJ Hawk Tamura says neutral rate around 2%
Asia Session
The Australian May Employment report shows a rebound from a disappointing April. Both Headline employment change and unemployment improved while participation rate steady. However, most of the gains come from part time rather than full time position, taking aways some shine from the report. AUD/USD is trading 0.03% lower at 0.6899. NZD/USD is trading 0.07% lower while USD/CAD is unchanged on oil.
Despite well known hawk Tamura suggest neutral rate to be far above expectation, the JPY failed to gain traction. BoJ's Tamura should be the most hawkish member within the board and his call is not unexpected given the traction in wage growth. Yet, the political obstacle remain robust for more rate hikes, let alone to 2%. USD/JPY is trading unchanged at 161.76. Else, EUR/USD is up 0.06% and GBP/USD is up 0.08%.
North American session
The USD opened firm, but came off its highs. US data had little clear impact, but was on the soft side of expectations, Q1’s current account deficit increasing to $226.8bn from $221.4bn, and May new home sales falling 7.3% to 580k.
EUR/USD recovered above 1.1350 from below 1.1330, with the EUR also seeing modest gains versus GBP and CHF. USD/JPY however remained bid, reaching 161.80. AUD/USD remained weak near .6890. USD/CAD was little changed near 1.3420, but did come off its lows after BoC minutes from June 10, before the Middle East peace deal, proved fairly balanced. Equities were mixed, oil and UST yields lower.