- Australia’s NAB business confidence index steady at 7
- Australia ANZ job advertisements down by 5.6% in May
- Australian home loans flat in April
- Chinese annual CPI up from 1.8% to 2.5%
- Japanese preliminary machine tool orders up by 24.1% y/y
- Nikkei closed 0.85% lower
- Swiss retail sales and jobless rate due
- U.K. manufacturing production to show 0.4% uptick
Who cares about weak data? The Australian dollar ignored lower than expected economic figures released in today’s Asian trading session, as it climbed to a high of .9368 against the U.S. dollar and surged to 95.87 against the Japanese yen. NAB business confidence held steady at the previous reading of 7 while home loans stayed flat in April. Job advertisements as measured by ANZ showed a 5.6% decline for May and saw a downward revision to 1.9% in the previous month.
What allowed the Aussie to hold on to its gains and go for more was the stronger than expected Chinese inflation figure. Annual CPI jumped from the previous 1.8% figure to 2.5% in May, suggesting that a rebound might be in the cards for the Australia’s number one trade buddy and the world’s second largest economy.
Over in Japan, preliminary machine tool orders data showed signs of a slowdown as came in at 24.1%, much lower than the previous annual reading of 48.7%. The Nikkei closed 0.85% lower for the day, as traders priced in the potential impact of this downturn on overall economic activity. USD/JPY slipped to a low of 102.25 while EUR/JPY dipped 4 pips below the 139.00 handle.
In the upcoming trading session, we’ll see Switzerland’s retail sales and jobs data. Retail sales could decline from the previous 3.0% year-over-year reading to just 2.2% while the jobless rate is slated to hold steady at 3.2%. Also due today is the U.K. manufacturing production report which might show a 0.4% uptick.
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