Asia Summary and Highlights 7 Feb

New Zealand Q4 unemployment rate 4.0% vs 4.2% expected
Asia Session
The FX market on Wednesday's Asia session was range bound with early USD weakness mostly reversed. The Q4 New Zealand Employment data beats estimate with 4% unemployment rate and showed a strong market with rising wage. While we do not think such beat would sway the RBNZ towards a hike, the Kiwi traders still cheer the strong report. Along with residue optimism of Chinese stimulus in the equity market, NZD/USD rose to 0.6111 before retracing partial gains to trade 0.07% higher at 0.6101, AUD/USD also trades 0.05% higher at 0.6525 while USD/CAD slipped 0.03% to 1.3487.
U.S. Treasury Yields are lower across the curve with equities performing individually. As JGB yields are also lower, USD/JPY is trading unchanged at 147.94 Elsewhere, EUR/USD is up 0.05% and GBP/USD 0.02% higher.
North American session
The USD moved lower in a quiet North American session, which lacked news of any real note. EUR/USD gained around 20 pips to 1.0750, but the JPY was the best performer dropping nearly a big figure to 147.90. GBP also outperformed the EUR, gaining half a figure to test 1.26. USD/CAD also lost around half a figure, helped by a slightly stronger than expected IVEY PMI, despite building permits data having come in well below expectations.
Fed’s Mester and Bank of Canada Governor Macklem both expressed a cautious approach towards easing, but their comments generated little market response.