Asia Summary and Highlights 2 Oct
Australian August trade balance misses
U.S. will provide Ukraine with intelligence for long-range missile strikes on Russia’s energy infrastructure
Japan’s 10-year government bond auction showed weaker demand
Asia Session
The Australian August 2025 trade balance came in lower than expected at +1825mn, with export contracting by 7.8% m/m and import higher at 3.2%. The fall in export is mostly dragged by gold export and the broad softness in commodity price. AUD/USD is trading 0.06% higher at 0.6617, NZD/USD is trading 0.25% higher at 0.5813 while USD/CAD rises 0.06%.
The 10-year government bond auction for Japan showed weaker demand as market participants remain cautious about the prospect of an October hike. 10yr JGB yields are closing in to annual high once again. It is also reported that U.S. will provide Ukraine with intelligence for long-range missile strikes on Russia’s energy infrastructure, which is a potential significant escalation if executed. USD/JPY is trading 0.11% higher at 147.20. Else, EUR/USD is up 0.03% and GBP/USD unchanged.
North American session
The USD slipped on a weak ADP employment report which fell by 32k in September with August revised to a 3k decline from a 54k increase, but ended little changed. September’s ISM manufacturing index at 49.1 from 48.7 was not significantly above expectations, but the USD correction started after the release.
USD/JPY returned to around 147.10 after a dip below 147 while EUR/USD returned to 1.1735 after bouncing to near 1.1770 on the ADP data. EUR/GBP was stable near .87 after European losses but EUR/CHF corrected to .9350 after rising to .9370. Well after the US data AUD/USD dipped to near .66 and USD/CAD rose above 1.3950 but these moves were not sustained with equities building gains.