Asia Summary and Highlights 12 Dec

Asia Session

USD/JPY rotates lower on softer USD. While U.S. Treasury Yields are lower across the curve, JGB yields are also lower. USD is trading broadly weaker on Tuesday Asia session after two consecutive days in the green. Japan November PPI bangs in estimate at +0.2% m/m and is higher y/y at +0.3% vs expected 0.1%. As higher PPI is supportive to CPI, the key reason for today's fall remains in potential yield differentials narrowing. USD/JPY is trading 0.54% lower at 145.36.

While RBA's Bullock does not sounds extra hawkish in her speech on Tuesday, the Aussie is gaining on soft USD and positive risk sentiment. Bullock sounds cautious in more tightening while keeping data dependency in her words. The tier two data release from Australia seems to have little impact towards the Aussie. With regional equities sentiment being positive, the AUD/USD is trading 0.4% higher at 0.6593, NZD/USD is trading 0.53% higher at 0.6155 while USD/CAD slipped 0.14%. Elsewhere, EUR/USD is up 0.05% and GBP/USD is up 0.15%.

North American session
The USD was a little firmer early in the North American session, though slipped back in the afternoon leaving the USD little changed. EUR/USD dropped below 1.0750 before correcting to near 1.0760, and USD/JPY saw highs above 146.50 while holding above 146. GBP/USD moved in line with EUR/USD, but the commodity currencies were little changed. EUR/CHF fell 30 pips to 0.9450.