Asian Session Recap – June 27, 2014

  • Nikkei down by 1.39% for the day
  • Japanese household spending declined by 8.0% y/y in May
  • Japanese retail sales down by an annualized 0.4% vs. estimated 1.9% decline
  • Japanese unemployment rate down from 3.6% to 3.5%
  • Japan’s national core CPI at 3.4% as expected
  • German preliminary CPI due today
  • U.K. current account and final GDP to be released

Higher-yielding currencies extended their gains against the safe-haven U.S. dollar in today’s Asian trading session but were still outpaced by the Japanese yen. Japan’s latest set of economic data showed mostly stronger than expected results, with the exception of the massive 8.0% drop in household spending year-over-year. The national core CPI improved from 3.2% to 3.4%, as an effect of the April sales tax hike, while Tokyo core CPI stood at 2.8%. Retail sales slid by an annualized 0.4% versus the estimated 1.9% drop while the jobless rate dipped from 3.6% to 3.5%.

New Zealand reported a stronger than expected trade surplus of 285 million NZD, higher than the estimated 250 million NZD figure, yet the previous reading was downgraded. No other reports were released from the rest of the major economies in the past few hours. AUD/USD continued its climb past the .9400 handle and is moving closer to .9450 while NZD/USD came within 8 pips shy of the .8800 mark. USD/JPY headed further south to a low of 101.29, with most of the yen pairs continuing to edge lower as of this writing.

German preliminary CPI is up for release, along with French consumer spending and Spanish flash CPI. Switzerland is also gearing up to print its KOF economic barometer, which could see an improvement from 99.8 to 100.2. Also due today is the U.K. current account balance, which might show a smaller deficit from 22.4 billion GBP to 17.1 billion GBP in the first quarter. U.K. final GDP is also in the lineup but no revisions from the initially reported 0.8% growth is expected.

 

U.S. Session Recap

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