Yen Pressured In Asia

The Yen is the weakest performer in the G-10 space at the margins, softer than forecast Labour Cash Earnings pressured the Yen in early dealing. Losses extended after the PBOC Yuan fixing was corrected to 7.1565 from 7.1365 as broad based USD buying was seen.

• USD/JPY prints at ¥134.30/35, the pair is ~0.6% firmer on Tuesday. We remain well below resistance at ¥144.20, the high from July 7. Labour Cash Earnings were softer than expected in June printing at 2.3% Y/Y vs 3.0% exp, Real Cash Earnings fell -1.6% Y/Y.
• AUD/USD is down ~0.4%, last printing at $0.6545/50 sitting at its lowest level since 3 August. Support comes in at $0.6514 (low from Aug 3) and $0.6485 (low from Jun 1).
• Kiwi is also pressured, NZD/USD is down ~0.4% and has breached the $0.61 handle. The pair last prints at $0.6075/80.
• Elsewhere in the G-10 space GBP and EUR are both ~0.2% softer. The scandies are pressured, SEK and NOK are down ~0.3%, however liquidity is generally poor in Asia.
• Cross asset wise; e-minis are down ~0.2% and the Hang Seng is down ~1.3%. BBDXY is up ~0.3% and 10 Year US Tsy Yields are down ~3bps.
• In Europe the final read of German national CPI for July provides the highlight, further out we have US Trade Balance and Wholesale Inventories.