Most Asia pacific equity markets declined early on Tuesday tracking weakness on wall following news that planned stateside tax cuts could be gradually implemented. In addition to this, Investors caution crept into markets following a drop in China’s factory gauge and as BOJ kept its interest rates steady
USDJPY dropped to lows of 112.98 earlier in the session, but soon bounced back to highs of 113.28 following announcements from Bank of Japan. Currently the USD is seen trading around 113.20 against the Yen. The Nikkei Stock Average was down 0.4% in early trade, with shares of major car makers down by about 1% amid strength in the yen.
EURUSD after testing above 1.1650 early in Tokyo morning started losing ground soon after. Currently, the EUR is seen trading around 1.1625 against the US Dollar. The dollar index, which tracks the dollar against a basket of currencies rose 0.1% and is currently valued at 94.61. The yield on 10-year Treasuries was at 2.36 percent after decreasing four basis points to 2.37 percent
AUDUSD reached close to 0.7700 early on Tuesday but fell short by 2 pips and started losing ground dropping down to current levels of 0.7673 on very soft credit data and China PMI data. Australia’s 10-year yield fell 6 basis points to 2.67 percent. Meanwhile, the kiwi was a mover today reaching highs over 0.6880 despite lower building and comments from the new finance minister expressing little concern on the lower NZD. Currently the New Zealand dollar is seen trading around 0.6850 against the USD.
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