ASIA WRAP: Markets Frustrated On Low Volatility Day


*US-China delay drives broad USD bid
*ASX outperforms climbing back above 6,700
*Aussie Trade balance catches strong beat A$7.18bn; est A$5bn



FX:

  • Action was limited today with little to no event risk. Markets generally leaned on a stronger USD with US-China trade likely delayed (again, no surprise).
  • AUDUSD -0.15%.
  • NZDUSD -0.22%.
  • USDJPY -0.21% trended lower to trade at 108.7.
  • GBPUSD -0.01% awaits BoE tonight. 
  • EURUSD -0.05%.
  • USDCAD +0.11.
  • USDCNH +0.07% is back above 7 on US-China trade fears.

Equities:

  • Equities proved mixed. 
  • ASX +1.00% defied the rest of the group led by Xero (XRO) +9.5% and Big 4 banks. 
  • S&P 500 Futures -0.02%.
  • Nikkei Futures +0.09%.
  • CSI 300 Futures +0.01%.

Fixed Income:

  • Yields ticked slightly lower on US-China frustrations.
  • AUS 10y yields came off -3bps. 
  • US 10y yields finished down -1.5bps.

Commodities:

  • Brent Crude Futures -0.02% steadied after a midnight fall driven by a bearish crude build.
  • Gold Spot +0.04% ended sideways lacking conviction to either side. 



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