Asian FX Wrap: JGB Yields Hit Records as China Data Shows Mixed Signals

Asian markets experienced notable movements Tuesday, with Japanese Government Bond yields reaching new records, pressuring USD/JPY lower by 0.3% to 155.20. The yen strengthened as 10-year JGB yields climbed to fresh multi-year highs, raising speculation about potential Bank of Japan policy adjustments. China released mixed economic data, with industrial production beating expectations at 5.6% YoY while retail sales disappointed at 3.7%, missing the 4.6% forecast. This divergence kept USD/CNH range-bound near 7.2650. Additionally, reports of Nvidia receiving approval to sell restricted GPUs to China provided temporary support for risk assets, though currency impacts remained muted. AUD/USD edged 0.2% higher to 0.6485, benefiting from the industrial production beat given Australia's commodity exposure. Regional currencies showed resilience despite global uncertainty, with traders awaiting further catalysts from European and US sessions.