Asia Summary and Highlights 5 Dec
Japan October Household Spending fell 3.0% y/y
Asia Session
The Japan October Household Spending fell by 3.0% y/y, missing estimate of a humble growth. Consumer demand is destined to be choppy, given the negative real wage in past month. However, this should not be viewed as a reversal of the already changing consumer behavior. Around noon in Asia, Bloomberg reported that the BoJ is tilted toward hiking in the December meeting. It gave the JPY a boost and see USD/JPY trading 0.13% lower at 154.85.
The broad risk atmosphere is undecided with equity indexes performing individually. So far on Asia Friday, we are seeing upbeat U.S. equities while regional equities choppy. AUD/USD is trading 0.15% higher at 0.6619, NZD/USD is trading 0.08% higher while USD/CAD slips 0.04%. Else, EUR/USD and GBP/USD are up 0.1%.
North American session
US initial claims surprisingly slipped to a 3-year low of 191k from 218k, though possibly influenced by Thanksgiving holiday seasonal adjustments. The initial reaction to the data was brief, but as the session progressed USD gains resumed, EUR/USD falling below 1.1650 from 1.1670 and USD/JPY rising above 155 from 154.85. GBP/USD reached a high of 1.3385 before slipping to 1.3335, leaving EUR/GBP only marginally lower at .8735. EUR/CHF advanced to .9360 from .9340. AUD and CAD also saw early gains corrected as the USD picked up, ending with only marginal gains versus the USD.