Forex Asia Trading News – Strong Machinery Orders and Domestic Corporate Goods Figures for Japan

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Domestic Corporate Goods Price and Core Machinery Order figures for the months of April and March have been announce in Japan. In regards to the Domestic Corporate Goods the announcement showed a 0.9% on a monthly basis, exceeding the 0.6% of the previous month and the 0.4% a Reuters Poll had indicated. On a yearly basis the figures indicated a 2.5% rise beating the 2.1% speculation and the 2% reading that was shown for the year ending in March. In regards to Core Machinery Orders the month of March showed an impressive 2.9% rise much higher than the 2.3% decline of February and even higher from the -9.6%. At the point of announcement no significant volatility was generated despite the news being quite hawkish for Japan.

The Domestic Corporate Goods Price Index measures goods prices that are purchased by domestic corporations in Japan. As this figure is correlated with the Consumer Price Index it can help measure inflation in Japan which could point out towards an interest rate hike. A high value is usually associated by hawkish currency behavior.