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Asia Recap: RBA steps up macro-prudential rhetoric, Abe jawboning the Yen

FXStreet (Bali) - The commodity bloc managed to eke out some minor gains against the US Dollar, which traded in a slightly softer tone across the board.

AUD/USD paused its bearish moves at 0.8825 from where a timid bounce took the rate towards 0.8860 intraday high. NZD/USD printed a session high of 0.8084 after a brief drop below 0.8050. USD/JPY came under a bit of pressure, trading along the 108.60 support line after a rejection off 109.00 in US hours. EUR/USD saw some tepid buying to re-adjust the rate upwards to 1.2855/60. GBP/USD continued to build upside pressure, currently at 1.6610 week high.

There were a few significant fundamental events in Asian hours. Starting in New Zealand, which saw a trade balance (MoM) better-than-anticipated at $-472M in August, above expectations of $-1275M.

In Australia, the RBA stepped up its rhetoric towards introducing macro-prudential measures to cool down the housing market in Australia, noting that they are discussing with Apra (Australian Prudential Regulation Authority) further steps to strengthen bank lending standards.

In Japan, Japanese Prime Minister Abe said that he wants to be careful about impact on local economies from recent yen weakening, adding that he is considering submitting extra budget in next year's diet (Japanese parliament). We also had the Japan Nomura/ JMMA Manufacturing Purchasing Manager Index, coming at 51.7 in September, below expectations of 52.5.

In the US, Federal Reserve Bank of Kansas City President Esther George, in a speech titled “Community Bank Regulation: Intent vs. Reality”, flooded the screen with headlines, the most relevant being that she wants to hike rates in the soon, at a gradual pace.

Key headlines

New Zealand trade balance comes better-than-expected

Australia CB Leading Indicator climbed from previous 0.4% to 0.5% in July

Abe: Considering submitting extra budget in next year's diet - Kyodo

Fed's George: Normalization process to be a 'volatile' time

Japan Nomura/ JMMA Manufacturing Purchasing Manager Index came in at 51.7, below expectations (52.5) in September

RBA financial stability report: Steps up talk on macro-prudential measures

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