U.S. Session Recap – May 2, 2014

  • US ISM manufacturing PMI up from 53.7 to 54.9 vs. 54.3 consensus
  • US initial jobless claims at 344K vs. 317K expected
  • US core PCE price index showed 0.2% uptick
  • US personal spending and income both stronger than expected
  • Chinese banks on Labor Day holiday
  • Japanese household spending up by 7.2% y/y
  • Japan’s jobless rate held steady at 3.6%
  • New Zealand ANZ commodity prices data due
  • Australian quarterly PPI to disappoint?

Data overload! There were plenty of economic figures released from the US in the latest New York trading session, with reports showing mixed results. The ISM manufacturing PMI showed an improvement from 53.7 to 54.9, outpacing the consensus at 54.3 and reflecting a strong expansion in the industry. The core PCE price index, which is rumored to be the Fed’s preferred inflation measure, showed a 0.2% uptick while personal spending and income figures both posted higher than expected results. Initial jobless claims, on the other hand, was weaker than expected as it showed a 344K reading instead of the estimated 317K.

Earlier in today’s Asian trading session, Japan reported a stronger than expected 7.2% increase in household spending. At the same time, the country’s jobless rate held steady at 3.6%, which suggests that a downturn in overall spending isn’t a concern for now. A news report revealed though that the Japanese government is considering a timetable for reducing corporate taxes in order to make up for the potential slack from the sales tax hike.

In the next few hours we’ll see New Zealand’s ANZ commodity prices data, along with Australia’s quarterly PPI report. Take note that inflation figures have been subdued lately so there’s a good chance we’ll see weaker than expected data, which might push these commodity currencies lower. Upside surprises, on the other hand, could keep risk-taking in the forex market and push the higher-yielders up.

See also:

London Session Recap

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