Japanese Core Machinery Orders Fall From Previous Month's Reading

Japanese Core Machinery Orders Fall From Previous Month's Reading

Japanese Core Machinery Orders Actual -4.4%, Expected -3.9%, Previous 5.5%

Release Explanation: This release measures the value of new machinery orders with manufacturers. Japan is a manufacturing and exporting giant and therefore these numbers impact the overall view of how that side of the economy is fairing. When manufacturers increase their spending on machinery it signals that the industry is in an expansionary phase.

Trade Desk Thoughts: Machinery orders for Japan fell by 4.4 percent in October which is lower than the 3.9 percent forecasted decrease and sharply lower than Septembers 5.5 percent reading. Meanwhile, machine orders have fallen 15.5 percent on an annual basis. The total value of machine orders, to include volatile ones such as ships and from electric power companies, fell by 14.4 percent. The strongest decrease was seen in the orders from foreign companies, down 37.2 percent after Septembers growth of 3.1 percent. The survey covered 280 manufacturers in the machinery sector.

Forex Technical Reaction: The Japanese yen has not had much of a reaction to these news release and is currently trading below the neutral LFB pivot point at 92.36.

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