Market Overview

ForexLive Asia Wrap: Japan Industrial Production Rises, Best Since June 2011

Japan January Nomura/JMMA Seasonal PMI rises to 47.7 (prior was 45.0)
Japan December Industrial production +2.5% M/M (vs. +4.1% expected), the best rise since June 2011. Japan's METI says output is showing signs of halting its declines.
Japanese Bought 663.1 Billion Yen Overseas Debt Last Week (Net figures here)
Japan December Labor Cash Earnings -1.4% Y/Y (prior was -0.8%)
BOJ candidate Iwata: Deflation can be overcome with monetary policy alone & again, & more,
Bank of Japan Deputy Governor Hirohide Yamaguchi: Further easing possible & more
Australia December HIA New Home Sales +6.2% (vs. +3% prior) (Note, the previous month was revised down from +4.7% to +3.0%)
Australia December Private Sector Credit +0.4% M/M (vs. +0.2% expected)
Australia December Private Sector Credit +3.6% Y/Y (vs. +3.4% expected)
Australia Q4 Export Price Index at -2.4% (vs. -1.5% expected)
Australia Q4 Import Price Index at +0.3% (vs. +0.4% expected)
New Zealand December M3 Money Supply +6.0%y/y
UK  GFK Consumer Confidence Indicator -26 (vs -28 expected, and -29 prior)

It was a very quiet session up until midday in Tokyo, with EUR/USD dead, AUD/USD crawling higher, and USD/JPY stuck gyrating around 91.05 despite Yen bearish comments coming from Tokyo (admittedly, saying nothing much new).

USD/JPY was the first to start moving, falling below 91.00 and down to 90.80 where it found initial support. The bounce couldn't get above 90.95 and it continued to slowly move lower making new lows as this report is being written.

AUD/USD made its way slowly to a high just above 1.0430 as news broke that one Federal Parliamentarian had been arrested on fraud charges. (I know, your asking; Why only one?). It settled around 1.0425 only to be sold off later in the session on news circulating that an S&P report had been issued saying that China (and many of the countries exporting commodities to China) faced “an investment-led economic collapse”. AUD/USD fell to buying support at 1.0395/05 but failed to register a convincing bounce and slipped to 1.0380. It is just above there as this report is being written.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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