Asia Summary and Highlights 24 Mar
Gulf states edge toward war with Iran as Saudi signals imminent entry
Asia Session
While Trump said he had a great discussion with Iranian counterpart and decided to postpone the strikes, Iran does not seem to agree. The theatrics continues on Tuesday Asia session as we see headlines about Gulf states edge toward war. It is something never occurred in previous U.S., Israel-Iran geopolitical conflict. Such will be a big escalation if materialize. AUD/USD is trading 0.6% lower at 0.6968, NZD/USD is trading 0.56% lower while USD/CAD rises 0.22%. Both the Brent and WTI are up around 3 USD/b. U.S. major equities are in the red while regional equities outperform. Precious metals are also lower in the session.
Japan February Headline CPI reach a low of 1.3% y/y, ex fresh food at 1.6% while ex fresh food and energy remain high at 2.5%. It is obvious the stimulus are working to keep cost of living easier for Japanese residents but the underlying momentum in inflationary pressure remains. USD/JPY is trading 0.21% higher at 158.74. Else, EUR/USD and GBP/USD are down 0.27%.