Asia Summary and Highlights 8 November

Asia Session

The Japan  September Overall Household Spending has contracted by 1.3% m/m and remained in negative territory y/y. It seems to suggest the reluctance of Japanese consumer to consume at high prices as we expected. BoJ may have to revise their trend inflation lower soon if such persist. More verbal intervention came out from Kate, Japanese finance minister’s mouth as USD/JPY stays elevated. However, there does not seem to be an escalation of rhetoric which suggests actual intervention may not be imminent. It still curbed USD/JPY and see it trading 0.12% lower at 152.74. 

On the last trading day of the week, market participants seems taking it easy and patiently waiting for the next week to place their bets. Risk sentiment is mixed with regional and U.S. three major equity indexes all performing individually. USD is broadly stronger except against the JPY and see the AUD/USD down 0.45% to 0.6650, NZD/USD slips 0.21% to 0.6013 while USD/CAD rose 0.16%. Else, EUR/USD is down 0.15% and GBP/USD is down 0.14%.

North American session

The FOMC eased by 25bps as expected. The initial reaction to the statement was a slightly stronger UISD given adjustments removing references to further progress on inflation, but this was reversed during Powell’s press conference, leaving EUR/USD near 1.08 and USD/JPY near 153, close to pre-decision levels. Other currencies saw similar moved, though AUD/USD ended firmer.