Japan’s Tertiary Industry Index

Japan’s Tertiary Industry Index for November expected at -0.4% came in worse at -0.8%, also weaker than October’s increase of 0.6%. The USDJPY pair had a muted reaction continuing to trade below the 77 handle to begin this week.

Japan’s Machine Orders & Inflation Report

Machine Orders rose in November and inflation picked up in November, however the USDJPY pair and risk pairs have had no reaction to the release.

• Machine Orders – Survey:5.1%   Actual:14.8%   Prior:-6.9%
• Machine Orders – Survey:3.8%   Actual:12.5%   Prior:1.5%

• Domestic CGPI (MoM) – Survey:-0.1%   Actual:0.1%   Prior:0.1%
• Domestic CGPI (YoY) – Survey:1.2%   Actual:1.3%   Prior:1.7%

Japan’s Azumi says he is ready to take various action on yen

* Concerned with trade deficit

* There are times when yen strays from fundamentals

Usd/Jpy trades at 76.95.

Japan’s Economy Watchers Sentiment slightly stronger than expected 47.0 vs. 46.3

Usd/Jpy  trades at 76.85.

Japan’s Trade Balance / Current Account Total

USDJPY had a muted reaction as the Current Account Total shrunk in November and the Trade Balance came in at a larger deficit than the prior month. The strength of the Yen continues to negatively impact the export driven Japanese economy.

• Current Account Total -  Survey:248.4B   Actual:138.5B   Prior:562.4B
• Adj. Current Account Total -  Survey:446B   Actual:480.4B   Prior:518.6B
• Current Account Balance (YoY%) -  Survey:-74.2%   Actual:-85.5%   Prior:-62.4%
• Trade Balance – Survey:-599.4B   Actual:-585.1B   Prior:-206.1B

Japan’s Industrial Production & Retail Sales

Surprisingly a stronger Yen has not helped Retail Sales but has shown its affect in declining Industrial Production readings. The market continues to have no reaction to these negative releases.

• Retail Trade (YoY) – Survey:0.0%   Actual:-2.3%   Prior:1.9%
• Retail Trade (YoY) – Survey:-0.5%   Actual:-2.1%   Prior:1.4%
• Large Retailers Sales (YoY) – Survey:-1.6%   Actual:-2.5%   Prior:-1.4%
• Industrial Production (MoM) – Survey:-0.8%   Actual:-2.6%   Prior:2.2%
• Industrial Production (YoY) – Survey:-2.0%   Actual:-4.0%   Prior:0.1%

Japan’s Employment & Inflation Report

The Unemployment Rate and Inflation readings came in relatively close to expectations and the market had a muted reaction to the releases. The details are as follows:

• Jobless Rate – Survey:4.5%   Actual:4.5%   Prior:4.5%
• Tokyo CPI (YoY) – Survey:-0.6%   Actual:-0.4%   Prior:-0.8%
• Tokyo CPI ex food/energy (YoY) – Survey:-1.0%   Actual:-1.1%   Prior:-1.1%
• National CPI (YoY) – Survey:-0.4%   Actual:-0.5%   Prior:-0.2%
• National CPI ex food/energy (YoY) – Survey:-1.0%   Actual:-1.1%   Prior:-1.1%

BOJ Meeting Minutes:

• Strain may remain in markets for time being.
• Economy’s downside risk rose since October.
• Global deterioration may hurt Japan.
• Members said they want to see if weak data is temporary.
• Yen and global slowdown may hurt capital expenditure and jobs.

The market had a muted reaction as the USDJPY pair trade around the 78 handle and the EURUSD continues to sit in the middle of the 1.30 level.

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