Asia Summary and Highlights 18 September

Asia Session

The Japan August trade data has missed estimate from both ends. Export came in lower at 5.6% y/y with import showing more sluggish growth at 2.3% y/y against expectation of double digit growth. It seems to suggest Japanese growth in the third quarter will continue to be hindered by soft private consumption. USD/JPY stay pressured in Asia. The gains on Tuesday have been halved as U.S. Treasury Yield falls while JGB yields close to unchanged. USD/JPY is trading at 141.27, 0.78% lower. 

The risk mood was broadly positive on Wednesday's Asia session before turning sour by Asia noon. The regional equity indexes are in the red while U.S. major equity indexes are in the green. The Aussie erased earlier gains to trade 0.06% lower at 0.6751 after reaching a session high of 0.6774, NZD/USD kept partial gains of 0.2% to trade higher at 0.6196 while USD/CAD slips 0.04%. Else, EUR/USD is up 0.06% and GBP/USD is unchanged.

North American session

The USD was supported by stronger than expected data, first a 0.1% rise in retail sales which did not see an expected dip in autos, with sales ex autos also up by 0.1%, and secondly a 0.8% rise in industrial production that was led by autos, though largely offset by negative back revisions. USD/JPY extended gains from 140.70 to see a late break above 142. EUR/USD saw only a modest dip to 1.1115 from 1.1140. EUR/GBP advanced to near .8450 from .8425 as GBP/USD fell back to 1.3160 from 1.3215 while EUR/CHF also saw marginal gains.

Canadian CPI was weaker than expected falling to 2.0% y/y from 2.5%. USD/CAD bounced above 1.36 on the mix of US and Canadian data but could not sustain the move, ending little changed, as did AUD/USD.