Asia Summary and Highlights 9 October
RBNZ Cut by 50bps as expected
Chinese equities tank
Asia Session
The RBNZ cuts cash rate by 50bp as expected to 4.75%, citing "lower import prices have assisted disinflation". It is previewed in their previous OCR forecast and is well supported by inflationary dynamics. NZD/USD is trading 0.68% lower at 0.6096. The correction in Chinese equities continues with bulls disappointed by the lack of extra stimulus. Chinese equity indexes was down more than 5% with HSI 1% lower in early Asia session. As the session progress, such losses are partially recovered with the HSI back in the green with a 2% gain AUD/USD is trading unchanged at 0.6746, while USD/CAD is up 0.05%.
USD is trading broadly higher against majors on Wednesday's Asia session. U.S. Treasury yields are performing individually while JGB yields are higher. USD/JPY is trading 0.22% higher at 148.51. Else, EUR/USD and GBP/USD are down 0.09%.
North American session
In a quiet session the USD made marginal gains, guided most by UST yields, USD/JPY rising to 148.35 from 148. USD gains versus GBP and EUR were even more marginal. EUR/CHF extended European gains to .8415. USD/CAD moved above 1.3650 but AUD/USD was stable, seeing AUD/CAD back above .92.
August’s US trade deficit of $70.4bn was down from $78.9bn in July but in line with consensus, with the average of July and August data showing little change from Q2.