Mon, Jul 22, 2024

JPY: AUD/JPY at 98.10 as Japan Machinery Orders Improve

Japanese Machinery orders for the month of December came at 2.7% versus 2.5% expected. This reading is good recovery from the previous month of -4.9% declines. Japanese Yen is moved higher against counter pairs after the news flashed.

Improved Japan Machinery Orders Boost Yen, Weigh Down AUD/JPY

AUDJPY is moving in Ascending channel and market has rebounded from the higher low area of the channel

AUDJPY is moving in Ascending channel and market has rebounded from the higher low area of the channel

Japan’s Machinery Orders exceeded expectations in January, rising by 2.7%, signaling increased business confidence in the manufacturing sector. The year-over-year data showed improvement with a -0.7% reading, surpassing the anticipated -1.4%. Meanwhile, Finance Minister Shunichi Suzuki emphasized the Bank of Japan’s control over monetary policy, hinting at a future interest rate increase.

On the contrary, the Australian Dollar found support from a record-high S&P/ASX 200 index, driven by robust mining stocks amid higher metals prices. Positive market sentiment may further strengthen the Aussie Dollar, supporting the AUD/JPY cross, as investors anticipate the Reserve Bank of Australia maintaining its current monetary policy in 2024.

RBA Meeting Minutes happened today and RBA Governor said no shift of monetary policy settings soon

Westpac foresees a resilient Australian economy with low unemployment and healthy corporate balance sheets. However, they expect the RBA to adopt a less restrictive approach in 2025. RBA Governor Michele Bullock acknowledged global economic outperformance, expressing optimism about the Australian economy’s favorable position and its ability to bring inflation under control.

JPY: Japan’s Core Machinery Orders Rise 2.7% in December

Japanese Machinery orders for the month of December came at 2.7% versus 2.5% expected. This reading is good recovery from the previous month of -4.9% declines. Japanese Yen is moved higher against counter pairs after the news flashed.

In December 2023, Japan’s Seasonally Adjusted Core Machinery Orders Increased by 2.7%

AUDJPY is moving in Ascending channel and market has fallen from the higher high area of the channel

AUDJPY is moving in Ascending channel and market has fallen from the higher high area of the channel

Tokyo, Japan — According to the Cabinet Office, Japan’s seasonally adjusted core machinery orders for December 2023 saw a 2.7% uptick from the previous month, marking the first increase in two months. The rise was fueled by strong demand from various sectors, including chemical manufacturers. Private-sector orders, excluding ships and power equipment and considered a key indicator of corporate capital spending, reached ¥838.8 billion. The government agency maintained its assessment, stating that machinery orders remain stagnant.

Specifically, orders from manufacturers surged by 10.1%, totaling ¥415.5 billion. Robust demand was also observed from information and communication electronics manufacturers, with increased orders for power generators and computers.

JPY: Japan’s December Core Machinery Orders Up, Limited Recovery Expected

Japanese Machinery orders for the month of December came at 2.7% versus 2.5% expected. This reading is good recovery from the previous month of -4.9% declines. Japanese Yen is moved higher against counter pairs after the news flashed.

Japan’s December Core Machinery Orders Beat Expectations, Year-on-Year Decline

Japan’s core machinery orders for December exceeded expectations, showing a 2.7% increase from the previous month, slightly above the forecasted 2.5% rise, according to Cabinet Office data. However, on a year-on-year basis, core orders, excluding volatile shipping and electric utilities data, declined by 0.7%, smaller than the predicted 1.4% fall.

Japanese Yen decline

Orders from manufacturers saw a significant uptick of 10.1% in December, driven by the chemicals and information and communication machinery sectors, rebounding from a 7.8% decline in November. In contrast, service-sector orders fell by 2.2%, influenced by decreases in mail and transport as well as telecommunication industries.

Looking ahead to the January-March period, a Cabinet Office official expects a 4.6% quarter-on-quarter increase in core machinery orders, driven by rising demand for motors and electronic and telecommunications equipment in unspecified industries.

GBPJPY is moving in Ascending channel and market has reached higher high area of the channel

GBPJPY is moving in Ascending channel and market has reached higher high area of the channel

Despite these positive indicators, the government maintained its view that machinery orders had stalled” for 14 consecutive months, citing a 1.0% drop in core machinery orders for the October-December period. Analysts note the overall strong appetite for capital investment but observe signs of weakening in the non-manufacturing sector as economic activity normalization progresses. Economist Masato Koike at Sompo Institute Plus predicts a restrained pace of recovery due to limited domestic demand and lack of momentum in the overseas economy.

JPY:  Japan’s Machinery Orders Up 2.7% in December

Japanese Machinery orders for the month of December came at 2.7% versus 2.5% expected. This reading is good recovery from the previous month of -4.9% declines. Japanese Yen is moved higher against counter pairs after the news flashed.

Japan’s Core Machinery Orders Rise 2.7% in December

In December, Japan’s core machinery orders increased by 2.7% from the previous month, reaching 838.8 billion yen (5.6 billion U.S. dollars), according to Cabinet Office data. The private-sector orders, excluding volatile categories like ships and electric utilities, are closely monitored as a leading indicator of corporate capital spending.

CADJPY is moving in Ascending channel and market has fallen from the higher high area of the channel

CADJPY is moving in Ascending channel and market has fallen from the higher high area of the channel

This growth, the first in two months, was driven by strong demand in the manufacturing sector, particularly in chemicals and information and communications. Orders from manufacturers rose by 10.1% to 415.5 billion yen, while non-manufacturing sector orders fell by 2.2% to 438.5 billion yen, impacted by declines in transportation and postal services.

The government maintained its assessment that machinery orders had “stalled” for the 14th consecutive month. Overall machinery orders, including those from the public sector and volatile categories, increased by 10.3% to 3.0 trillion yen.

JPY: Japan’s Machinery Orders Up 2.7% in December

Japanese Machinery orders for the month of December came at 2.7% versus 2.5% expected. This reading is good recovery from the previous month of -4.9% declines. Japanese Yen is moved higher against counter pairs after the news flashed.

Japan’s Core Machinery Orders Rebound by 2.7% in Dec

EURJPY is moving in Ascending channel and market has rebounded from the higher low area of the channel

EURJPY is moving in Ascending channel and market has rebounded from the higher low area of the channel

In December 2023, Japan’s core machinery orders, excluding those for ships and electric power companies, increased by 2.7% to 838.8 billion yen. This marked a reversal from a 4.9% decline in November and surpassed market expectations for a 2.5% gain. The upswing in capital spending was propelled by a 10.1% gain in the manufacturing sector, totaling 415.5 billion yen, while the non-manufacturing sector decreased by 2.2% to 438.5 billion yen. As a highly volatile data series, core machinery orders are considered a leading indicator of capital spending in the next six to nine months. On an annual basis, private-sector machinery orders showed a 0.7% decline in December, an improvement from the 5% drop in November and better than the forecasted 1.4% fall.

JPY: Japan’s Machinery Orders Up 2.7% in December

Japanese Machinery orders for the month of December came at 2.7% versus 2.5% expected. This reading is good recovery from the previous month of -4.9% declines. Japanese Yen is moved higher against counter pairs after the news flashed.

Japan’s Core Machinery Orders Up 2.7% in December

In December 2023, Japan’s core machinery orders, excluding those for ships and electric power companies, increased by 2.7% month-on-month to 838.8 billion yen. This marked a reversal from a 4.9% decline in November and exceeded market expectations for a 2.5% gain.

Japanese yen sends higher more against US Dollar

On an annual basis, private-sector machinery orders showed a 0.7% decline in December, an improvement from the 5% drop in November and better than forecasts for a 1.4% fall.


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