ASIA WRAP: Mute Price Action On Little Headline Risk


*Liquidity 30% lower in Asia as weekend starts 
*UK election ball sits in Labour's court
*Equities finish on a high



FX:

  • Event risk was subdued and led to slow price action and tight ranges in Asia. Markets leaned on USD bid but faded the move somewhat late in the session.
  • AUDUSD +0.16% gained late.
  • NZDUSD -0.09% gained late but still finished down.
  • USDJPY +0.03% finished flat as markets await US/China developments.
  • USDCAD -0.05% was extremely tight. Bearish convictions remain.
  • GBPUSD -0.01% finished flat as markets await Brexit developments.
  • EM FX was an exception with USD selling off against most emerging market currencies. This was likely caused by calmer risk sentiment which sees EM FX attractive.
  • USDCNH -0.09%.
  • USDZAR -0.3%.
  • USDTRY +0.24% with last night's CBT meeting still weighing on the pair.

Equities:

  • Equities climbed on negligible headline risk and lower volatility. Positive earnings overnight have also helped. 
  • ASX Cash +0.68% extended week gains led by the Energy (+1.59%) sector. Resmed (RMD.AX) +11% and Resolute Mining (RSG.AX) +9.6% were the best performers.
  • ASX Dec Futures +0.03% closed at 6,717.
  • S&P 500 Futures +0.09%. 
  • Nikkei Futures -0.04%. 
  • CSI 300 Futures +0.8%.

Fixed Income:

  • Yields were similarly quiet with trading largely flat.
  • AUS 10y yields ticked higher +1bps but close the week lower -12bps at 106bps.
  • US 10y yields did little to finish the week where it started at 176bps.

Commodities:

  • Brent Crude Futures -0.4% have pulled slightly back from the week's highs on a marginal USD bid. 
  • Gold spot +0.14% edged higher on lingering uncertainty around Brexit and US/China trade.



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