In This Article:
Earlier in the Day:
Economic data released through the Asian session was limited to inflation and manufacturing PMI numbers out of Japan.
For the Japanese Yen,
It was more bad news for the Bank of Japan this morning. Core consumer prices rose by 0.7%, year-on-year. The annual rate of core inflation eased from 0.8% in January. Forecasts were for the rate of inflation to hold steady at 0.8%.
According to figures released by the Ministry of Internal Affairs and Communication,
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The annual rate of inflation came in at 0.2% in February, falling short of a forecasted 0.3%. The rate of inflation was in line with January.
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Month-on-month, consumer prices were flat.
The Japanese Yen moved from ¥110.759 to ¥110.762 upon release of the figures that preceded the manufacturing PMI numbers.
The manufacturing PMI held steady at 48.9 in March, according to prelim figures. Forecasts were for the PMI to come in at 49.2. According to the Markit survey,
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Output fell at the fastest pace in almost 3-years in March.
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Following the latest trade figures, new orders and new export orders fell at a faster rate than in February.
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In spite of weaker demand, both output price and input prices rose at a more marked rate.
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Perhaps of greater significance was improved optimism across the sector. The improved optimism somewhat contradicted the slower pace of purchases that suggests apprehension over what lies ahead.
The Japanese Yen moved from ¥110.846 to ¥110.797 upon release of the figures. At the time of writing, the Japanese Yen was up 0.04% to ¥110.78 against the Dollar.
Elsewhere,
At the time of writing, the Aussie Dollar stood at $0.7106, down by 0.08% for the session. The Kiwi Dollar stood at $0.6890, up by 0.19% for the session.
The Kiwi Dollar continued to find support, ahead of next week’s RBNZ monetary policy decision. Out of the majors, the RBNZ remains the only central bank to take a more hawkish stance going into next week.
The Day Ahead:
For the EUR
It’s a busy day ahead on the data front. Key stats due out later this morning includes prelim March private-sector PMI Numbers out of France, Germany, and the Eurozone.
Following a particularly dovish ECB and a number of weak economic indicators of late, we can expect the numbers to impact the EUR.
The focus will be on Germany’s manufacturing PMI and the Eurozone’s composite.
Outside of the numbers, we can expect Brexit chatter from the EU Summit and sentiment towards trade talks between the U.S and China to also influence.
At the time of writing, the EUR was up 0.02% at $1.1376.