ASIA MARKET WRAP: Mixed feelings

*AUD Business Confidence disappoints
*China CPI inflation beats
*NOK inflation reinforces hiking bias


  • AUDUSD is up 0.04%, having pared a 10pip fall driven by weaker business conditions and confidence (1 vs 4). 
  • USDCNH is slightly down -0.15% off a CPI y/y (2.8% vs 2.6%e) beat. PPI y/y (-0.8% vs -0.9%e) also printed better than expected. 
  • USDJPY gave way to marginal JPY weakness, +0.12%, closing above 107.3. Positioning in the pair suggests markets are now short JPY and could be squeezed higher. 
  • USDNOK was largely unchanged as CPI y/y came in slightly lower 1.6% vs 1.8%e, though with Core inflation y/y still above 2% - the Norges Bank retain their hiking bias.
  • The rest of the G10 majors were fairly tamed though GBPUSD has popped 30 pips as Europe walks in, testing yesterday's high of 1.238. 
  • US EMs are weaker across the board with USDZAR highest beta. 


  • Equities failed to keep up positive gains seen over the past three trading days, broadly finishing in the red at Asia close. 
  • ASX finished down -0.51% to end at 6,614.  
  • S&P500 futures weakened -0.11%. 
  • CSI300 pulled back -0.34%. 
  • Nikkei futures edged higher, up +0.09%. As did Hang Seng futures, bid +0.08%. 

Fixed Income:

  • US 10y yields and AUS 10y yields ticked higher early morning but pulled back late to finish largely flat. 


  • Brent crude rallied again on potential lower supply dynamics from OPEC cut, finishing Asia up 0.3%. This makes it a +8% gain since last Wednesday.  
  • Gold (-0.4%) and Silver (-0.6%) both capped the session with a fourth day of losses. Gold looks likely to test August 13th lows