The yen weakened in Asia with USD/JPY rebounding toward 147.50 in what looked like a retrace of Friday’s Powell-driven drop. Broader FX moves were modest, while upbeat New Zealand retail sales highlighted the boost from lower RBNZ rates. Asia-Pacific equities gained on Powell’s signal that a September Fed cut remains in play.
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The yen led moves in Asia, with USD/JPY climbing from sub-146.75 to around 147.50 before flattening. The move appeared to be a retrace of Friday’s post-Powell drop, rather than a response to fresh news. BOJ Governor Ueda spoke over the weekend and hinted at the potential for further rate hikes, a yen-supportive signal.
The dollar’s strength spilled over modestly into other pairs, with EUR/USD edging lower and early weakness in AUD, NZD, and GBP later retracing. On the data front, New Zealand retail sales surprised to the upside in Q2, a sign that lower RBNZ rates are boosting household consumption and supporting recovery.
Across equities, Asia-Pac markets traded mostly higher, buoyed by expectations that Powell’s Jackson Hole remarks have left the door open to a September Fed rate cut.
Asia-Pac
stocks:
- Australia
(S&P/ASX 200) +0.3% - Hong
Kong (Hang Seng) +1.9% - Shanghai
Composite +1.2% - Japan
(Nikkei 225) +0.25%
Cattle and livestock traders will want to note that the first U.S. human screwworm case was confirmed in Maryland. Screwworms are parasitic flies that lay eggs in open wounds, with larvae burrowing into living flesh. In animals, infestations can be fatal if untreated.
This article was written by Eamonn Sheridan at investinglive.com.