- NZ credit card spending rises by 2.5% in January vs. 1.0% expected, 0.0% previous
- Japans preliminary GDP (q/q) up by 0.2% vs. 0.3% expected and previous
- Japans preliminary GDP price index slips by 0.1% vs. 0.2% decline expected and previous
- USD/JPY ticks higher over lack of currency-related discussions from Trump and Abe
The dollar started the week on the right side of the charts, as optimism over Trumps phenomenal tax plans and a lack of jawboning over the weekend.
Japans GDP Data released earlier saw the worlds third largest economy expanding by 0.2% in Q4 2016, missing expectations of a 0.3% uptick. Still, the report marked the fourth consecutive quarter of growth.
On an annualized basis, Japans economy had grown by 1.0% in Q4 2016, slightly lower than the 1.4% uptick in Q3 2016 and below expectations of a 1.1% growth.
A closer look tells us that external demand added 0.2% to the GDP. Exports of goods and services also shot up from 2.1% to 2.6% while imports grew by 1.3% and marked its first growth in a year.
Government spending also grew from 0.3% to 0.4% and non-residential investments popped up from -0.3% to 0.9%. However, domestic spending was flat after inching 0.3% higher in Q3 while public investments slipped by 1.8% (from -0.7% in Q3) and private residential investment contracted by 0.1%.
The report printed a mixed picture overall, as it hinted of slowing economic growth and highlighted the governments struggle to get consumers to contribute to economic activity.
Relief over Trump-Abe weekend meeting The Asian bourses had a good start to the week as they tracked Wall Streets record close last Friday. If you recall, market bulls came out of the woodwork when Trump announced that he would reveal something phenomenal in terms of tax over the next two to three weeks. Nothing like a good cliffhanger to get viewers or in this case, market players to stay tuned!
It also didnt hurt that there were no talks of currency manipulation and trade imbalances during Shinzo Abes visit to the U.S. See, Asian investors were worried that Trump would call out Japan for its unfair trade practices and generally cause uncertainty among Uncle Sams Asian trading partners.
Last but not the least, Asian market players played catch-up to the rise in oil prices after OPEC showed that its quota policing is doing its job.
Nikkei shot up by 0.50% and Australias A SX 200 is up by 0.66%. Meanwhile, the Shanghai index is also up by 0.63% and Hang Seng is up by 0.52%.
JPY The yen lost a couple more pips across the board after Abes meeting with Trump yielded no negative talks about currency manipulation.
USD/JPY is up by 35 pips (+0.31%) to 113.92, EUR/JPY inched 24 pips higher (+0.20%) to 120.96, and GBP/JPY shot up by 61 pips (+0.43%) to 143.32.
- 8:00 am GMT: German wholesale price index (0.3% expected, 1.2% previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippins Daily Chart Art for some pip-locking technical setups!