Asia Summary and Highlights 13 November

Asia Session

The Australia Q3 2024 Wage Price Index arrived at +0.8% q/q, slightly lower than estimates and is showing signs that the Australian wage growth is slowing. Yet, the pace of slowing will likely be moderate as the labor market remains solid. Risk sentiment is sour on Wednesday's Asia session. AUD/USD is trading unchanged at 0.6533, NZD/USD is up 0.02% while USD/CAD also up 0.07%.

As USD continue its post Trump rally, the USD/JPY is staying elevated on Wednesday with little sign of verbal intervention from the Japan side. It is understandable in a way as the Japanese government and BoJ would be more intimidated by the pace of weakness in JPY rather a specific level. And now after the initial frenzy, the pace of weakness does not seem to be accelerating. But do not get me wrong, the continual weakness of JPY will remain in the heart of BoJ and the Japanese cabinet and we will likely hear from from them if USD/JPY rallies further . USD/JPY is trading 0.14% higher at 154.81. Else, EUR/USD and GBP/USD are down 0.05%.

North American session

Buoyed by UST yields the USD was stronger, though USD/JPY gains stalled ahead of 155 and EUR/USD found support near 1.06. GBP was particularly weak with GBP/USD falling below 1.2750 and EUR/GBP rising to .8330. The commodity currencies were choppier, and net little changed.

The Fed’s Senior Loan Officer Opinion Survey of bank lending showed weaker demand for C+I loans. Fed’s Kashkari suggested a pause in rates was possible if inflation surprised on the upside.