ASIA-PAC MID-SESSION UPDATE: Asia trades mixed after a further ascent in DJIA and as region digests slower Chinese GDP

Asia equity markets trade mixed after a mostly positive close on Wall St. where all 3 majors posted fresh intraday records and the DJIA extended above 23K powered by IBM’s best performance in 8 years, while the region also digests a slew of tier 1 Chinese data including Q3 GDP which printed inline with estimates. ASX 200 (+0.2%) and Nikkei 225 (+0.7%) are higher with the latter outperforming as it coat-tailed on USD/JPY’s reclaim of the 113.00 handle. Elsewhere, Hang Seng (-0.1%) and Shanghai Comp. (-0.4%) are less enthusiastic as participants mull over the latest data in which Chinese GDP met expectations but still slowed from prior.

In FX markets, AUD/USD was in focus with early support seen after better than expected jobs data in which Employment Change topped estimates and the Unemployment Rate unexpectedly declined. This underpinned AUD/NZD briefly above the 1.1000 level, and in turn dampened NZD with participants also tentative ahead of the New Zealand First Party’s announcement on which side to back to form the next government. However, upside in AUD/USD was later pared in the wake of the Chinese data which showed a mild slowdown in Y/Y growth. Elsewhere, the rest of major currencies were relatively uneventful with JPY remaining weak, while EUR/USD and GBP/USD attempt to hold onto the prior session’s gains despite somewhat struggling to maintain the 1.1800 and 1.3200 handles respectively.

Finally, 10yr JGBs are flat with demand subdued amid the positive risk tone in Japan and ahead of a 5yr JGB auction later.

19 Oct 2017 - 03:51- ForexData- Source: Newswires

Subscribe Now to RANsquawk

Click here for a 1 week free trial

RANsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include: