Asia Summary and Highlights 17 Dec
Trump orders total blockade of sanctioned oil tankers entering or leaving Venezuela
Asia Session
On Wednesday, it is reported that Trump has ordered total blockade of sanctioned oil tankers entering or leaving Venezuela. It is an escalation after he previously ordering the seizure of oil tanker, the Skipper, along with various new sanctions he imposed on Venezuela's president and related personnel. Oil has jumped more than one percent but the broader risk asset is still calm. USD/JPY is trading 0.27% higher at 155.11. November Export came in strong at 6.1% y/y while import is at 1.3% y/y, both supportive for a BoJ move this Friday.
The USD is trading broadly higher against majors on Wednesday. It follows Tuesday's rebound momentum after taking a beating during last week. Major equity indexes are performing individually yet the overall mood isn't upbeat. AUD/USD is trading 0.27% lower at 0.6615, NZD/USD is trading 0.17% lower while USD/CAD rises 0.17%. Else, EUR/USD is down 0.17% and GBP/USD is down 0.27%.
North American session
US employment data was mixed, with unemployment up to 4.6% in November from 4.4% in September, and a 64k rise in November payrolls not fully erasing a 105k October loss. However, private payrolls in both months increased, November by 69k and October by 52k. Later December S and P PMIS were weaker, manufacturing at 51.8 from 52.2 and services at 52.9 from 54.1.
UST yields and equities were slightly lower but the USD saw little change versus most currencies. EUR/USD returned to near 1.1760 after briefly moving above 1.18 while USD/JPY was capped at 155. USD/CAD was slightly weaker near 1.3750 though AUD/USD was little changed near .6640 after a brief bounce to .6660.