Asia Summary and Highlights 5 Mar
Risk stays choppy on geopolitical uncertainty
Asia Session
Risk aversion remains elevated as global markets navigate a landscape defined by heightened geopolitical uncertainty. While the three major U.S. equity indices are trading lower, regional markets have shown resilience. Precious metals have moved higher, oil prices have also advanced amid concerns of disrupt supply via Strait of Hormuz. AUD/USD fell 0.3% to 0.7054 and NZD/USD sliding 0.18% while USD/CAD is slightly higher by 0.03%.
USD/JPY is trading largely unchanged as the initial optimism observed on Thursday fades. Despite the absence of fresh headlines, market participants appear increasingly cautious about the possibility of a prolonged conflict. The pair is trading 0.02% lower at 157.03, recovering modestly after touching a session low of 156.45. Else, EUR/USD is down 0.17% and GBP/USD is lower by 0.26%.
North American session
US data was on the strong side of expectations, with a 63k rise in February’s ADP employment report and more significantly a February ISM services index of 56.1 from 53.8 in January, though focus remained in the Middle East and market reaction was modest. Equites were firmer, with the S and P up around 1.0%. European USD losses were largely sustained with USD/JPY stable near 157 and EUR/USD stable near 1.1640. The commodity currencies picked up in the afternoon, AUD/USD to .7075 while USD/CSAD fell below 1.3650.