Asia Summary and Highlights 29 Aug

Asia Session

The August Tokyo headline CPI came in at 2.6% y/y, moderating from 2.9% in July. However, ex fresh food and energy remain elevated at 3.1%, despite ex fresh food also moderates. It continues to point towards stubborn underlying inflation and could further pressure the BoJ to hike. USD/JPY is trading 0.04% higher at 146.99 with both the U.S. Treasury and JGB yields higher. U.S. VP Vance continues to jab Fed's independency while Governor Cook has filed for legal action against Trump.

Regional equities are outperforming U.S. major equity indexes on Friday. There has not been major headlines nor update regarding Trump-Fed fiasco that seized market attention so far in the session. AUD/USD is trading 0.08% higher at 0.6537, NZD/USD is trading 0.09% higher at 0.5889 while USD/CAD rises 0.05%. Else, EUR/USD is down 0.18% and GBP/USD si down 0.12%.

North American session

Despite positive US economic data, the USD softened modestly in North America. EUR/USD gains from 1.1650 stalled just ahead of 1.17. AUD. CAD and GBP were marginally firmer. EUR edged higher on the crosses, notably EUR/CHF which advanced to .9360 from .9330. USD/JPY traded in a tight range near 147. 

Q2 US GDP was revised up to 3.3% from 3.0% with the revision led by domestic demand, business investment in particular. Initial claims fell to 229k from 234k while continued claims fell to 1.954m from 1.961m.