Trade Desk Thoughts - Japanese Core Machinery Orders

Japanese Core Machinery Orders Actual -14.5%, Expected -3.0%, Previous -3.9%

Release Explanation: This release measures the value of new machinery orders with manufacturers. Japan is a manufacturing and exporting giant and therefore these numbers impact the overall view of how that side of the economy is fairing. When manufacturers increase their spending on machinery it signals that the industry is in an expansionary phase.

Trade Desk Thoughts: Japanese machinery orders were down a seasonally adjusted 14.5 percent in August. This excludes volatile items such as ships and orders from electric power companies. Manufacturers are expecting to see a global slowdown into the next year. Machinery orders received by Japans 280 manufacturers dropped by 1.2 percent in August from the previous month on a seasonally adjusted basis.

Forex Technical Reaction: The Japanese yen has risen to just above TheLFB neutral pivot point at 99.82.

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