Asia Summary and Highlights 17 April
Australia March 2025 unemployment rate 4.1% & Employment Change +32.2K
Japan PM Ishiba says talks with the US were constructive
Bank of Japan Governor Ueda says Japan's real interest rate remains very low
Asia Session
The risk mood seems to be more calm by the opening bell on Thursday. Japan PM Ishiba says talks with the US were constructive, which obviously does not give any exact detail or expectation of a fast track trade deal, still seems to be better than a harsh remark. USD/JPY is trading 0.48% higher at 142.52 while both the U.S. Treasury and JGB yields rise.
The Australian March labor data has recovered from February's dip. The headline employment change also grow by 32.2k with an almost equal split between full time and part time with unemployment and participation rate unchanged. Nevertheless, AUD/USD fell as USD is trading broadly stronger and dipped 0.39% to 0.6347, NZD/USD is also down 0.35% to 0.5914 while USD/CAD rose 0.21%. Else, EUR/USD is down 0.28% and GBP/USD is down 0.15%.
North American session
Equities came under early pressure on restrictions to chip exports and extended their losses after Fed’s Powell looked to risks on both sides of the Fed mandate while signalling no rush to change policy. USD/JPY, previously stable near 142.70, slipped on Powell’s remarks with the move extending below 142 as equity losses deepened. EUR/USD was steady through most of the session but saw late gains to touch above 1.14. EUR/GBP advanced above .86.
USD/CAD slipped to 1.3875 from 1.3925 after the Bank of Canada left rates unchanged at 2.75% and stated it would proceed carefully going forward. AUD/USD was little changed near .6370.
US data had limited impact being fairly close to expectations. March retail sales rise by 1.4% with ex auto sales up by 0.5%. March industrial production fell by 0.3% on utilities but manufacturing rise by 0.3%.