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U.S. Dollar Drops Against Most Majors





The U.S. dollar weakened against most major currencies in the Asian session on Tuesday. The U.S. dollar fell to 5-day lows of 1.1264 against the euro and 0.9718 against the Swiss franc, from yesterday's closing quotes of 1.1244 and 0.9738, respectively.
Against the yen, the greenback dropped to a 5-day low of 119.56 from yesterday's closing value of 119.91.
If the greenback extends its downtrend, it is likely to find support around 1.14 against the euro, 0.96 against the franc and 118.00 against the yen.


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Japan Industrial Production Eases In August





Industrial output in Japan fell a seasonally adjusted 0.5 percent on month in August, the Ministry of Economy, Trade and Industry said in Wednesday's preliminary reading. That was well shy of forecasts for an increase of 1.0 percent following the 0.8 percent decline in July. On a yearly basis, industrial production added just 0.2 percent - also below expectations for a gain of 1.8 percent following the flat reading in the previous month. Upon the release of the data, the METI downgraded its assessment of industrial production, saying that it has weakened; previously, the METI said output had been fluctuating indecisively. Industries that mainly contributed to the monthly decline included business-oriented machinery, electrical machinery and transport equipment. According to the survey of production forecast in manufacturing, production is expected to rise 0.1 percent in September and jump 4.4 percent in October. Industries that mainly contribute to the increase in September included electrical machinery, communications equipment and chemicals. Industries that mainly contribute to the increase in October included business-oriented machinery, transport equipment and electrical machinery. Shipments in August were down 0.5 percent on month, down for the second straight month. They were also up 0.8 percent on year. Industries that mainly contributed to the decline included business-oriented machinery, fabricated metals and paper products. Inventories in August added 0.4 percent on month, reversing the previous month's losses. They were also up 2.2 percent on year. The inventory ratio in July climbed 6.1 percent on month, rising for the first time in three months. It also showed an increase of 1.0 percent on year. Also on Wednesday, the METI said that retail sales in Japan were up 0.8 percent on year in August. That missed expectations for an increase of 1.2 percent following the 1.8 percent jump in July. Sales from large retailers jumped an annual 1.8 percent - beating forecasts for an increase of 1.3 percent following the 2.1 percent spike in the previous month. On a seasonally adjusted monthly basis, retail sales were flat in August versus expectations for an increase of 0.5 percent and down from 1.4 percent a month earlier.


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British pound weakens ahead of Carney speech





The British pound on Tuesday hit its lowest in nearly five months as traders look forward to Bank of England Governor Mark Carney's speech for clues on when interest rates might begin to increase. Sterling stood at 74.13 pence per euro. Against the US dollar, the currency closed at $1.5128. It seems the market refuses to price in anything such as the rate profile the central banks are attempting to convey, for all the ECB seeks “to talk up the prospect of more QE, and Carney talks about higher rates,” said Adam Cole, Head of FX Strategy at RBC Capital Markets. Investors expect the BOE to follow the Federal Reserve in raising rates from their current lows. But the central is not rushing, with the UK inflation still at zero.


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U.S. Dollar Rises Against Most Majors





The U.S. dollar strengthened against most major currencies in the Asian session on Thursday. The U.S. dollar rose to a 3-day high of 1.1155 against the euro, from yesterday's closing value of 1.1176. Against the yen and the Swiss franc, the greenback edged up to 120.27 and 0.9759 from yesterday's closing quotes of 119.87 and 0.9731, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.10 against the euro, 122.00 against the yen and 0.98 against the franc.


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Japan Household Spending Climbs In September





The average of household spending in Japan jumped 2.9 percent on year in August, the Ministry of Internal Affairs and Communications said on Friday - standing at 291,156 yen. That topped forecasts for an increase of 0.3 percent following the 0.2 percent annual contraction in July. The average of monthly income per household stood at 475,369 yen, up 2.2 percent on year, while the average of consumption expenditures per household was 317,195 yen, up 3.4 percent on year. Individually, spending on housing jumped 15.2 percent on year, followed by education (13.3 percent), communication (8.6 percent), furniture (7.7 percent), fuel (6.8 percent), recreation (1.5 percent) and food (0.6 percent). Spending on clothing was down 4.9 percent, and medical care was down 4.2 percent. Also on Friday: . The ministry said that the unemployment rate in Japan came in at a seasonally adjusted 3.4 percent in August. That was above forecasts for 3.3 percent, which would have been unchanged from the July reading. The job-to-applicant ratio was 1.23, beating forecasts for 1.22 and up from 1.21 in the previous month. The participation rate was 59.6, unchanged from the previous month. The number of employed persons in August was 63.79 million, an increase of 160,000 or 0.3 percent on year. The number of unemployed persons in August was 2.25 million, a decrease of 60,000 or 2.6 percent on year. . The monetary base in Japan jumped 35.1 percent on year in September, the Bank of Japan said, coming in at 332.194 trillion yen. That follows the 33.3 percent spike in August. Banknotes in circulation climbed an annual 5.9 percent, while coins in circulation gained 0.7 percent. Current account balances surged 52.4 percent on year, including a 51.5 percent spike in reserve balances. The adjusted monetary base climbed 46.3 percent to 332.512 trillion yen. For the third quarter of 2015, the monetary base jumped 33.7 percent on year.


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Euro escalates ahead of US jobs data





The euro lost its ground Thursday, a day before the US jobs data that may affect the Federal Reserve's timing of raising interest rates this year. Traders are anticipating the nonfarm payrolls data, which many of them believe the figures may give a clearest picture of the overall US economy. Against the US dollar, the common currency closed at $1.1196. Thursday's move emphasizes the uncertainty encompassing the market “regarding the Fed's timing,” said Joe Manimbo, Senior Market Analyst at Western Union.


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Australia Job Ads Rise At Faster Rate In September l





Job advertisements in Australia climbed for the second straight month in September at a faster pace, latest survey from the Australian and New Zealand Banking Group revealed Monday. Total job ads rose a seasonally adjusted 3.9 percent month-over-month in September, much faster than the 1.3 percent increase in August. In July, ads had fallen 0.4 percent. Internet job ads also grew at a faster pace of 4.0 percent monthly in September, following a 1.3 percent rise in the previous month. Meanwhile, newspaper ads fell 2.7 percent over the prior month, marking its first drop in three months. On an annual basis, job ads surged 10.5 percent in September, slightly slower than August's 10.7 percent growth. "The positive trend in job advertising is a sign that the economy is so far adjusting relatively well to significant headwinds from falling commodity prices and mining investment," ANZ Chief Economist Warren Hogan, said. "While we expect momentum in non-mining activity to remain quite good in the near-term, our view is that the significant support to growth from the factors above will wane heading into 2016." "For this reason, we expect employment growth to remain reasonably healthy over the remainder of 2015 but to then soften next year. This is likely to prompt the Reserve Bank to provide a little more monetary policy support to prevent the unemployment rate from rising further."


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US dollar holds losses as traders pare back rate bets





The US dollar nursed losses Monday as disappointing US jobs data made investors scale back bets the Federal Reserve was on course to increase interest rates as early as this month. Last week, the nonfarm payrolls report showed the US employers added only 142,000 jobs in September. The greenback finished at $1.1233 from Friday's $1.1319. Against the Japanese yen, the currency closed at ¥120.01 from ¥118.68. “Though the Fed anticipated to defer its first rate hike until the first quarter of 2016, we still believe “the US economy is one of the few capable of generating inflation due to a relative tight labour market,” said strategists at Barclays. Uncertainty regarding the Fed's timing of rate increase has kept the currency locked in ranges although the US central bank is still expected to be the first one to raise rates in the near term.


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Japanese yen declines as haven demand falters on higher stocks





The Japanese yen plummeted Tuesday as a rebound in commodities and stocks dampened demand for safe haven. The currency ended at ¥120.48 per US dollar and ¥85.36 per Australian dollar. Stocks and commodities, as US rate hike bets are scaled back, noticed a “big rebound and eased risk aversion,” said Etsuko Yamashita, Chief Economist at Sumitomo Mitsui Banking Corp. Meanwhile, the Bank of Japan will commence their two-day meeting today.


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Australia retains rates as Aussie alleviates commodity price plunge





Australia's central bank on Tuesday left interest rates unchanged as the Australian dollar eased the impact of commodity prices' downfall and a weaker Chinese economy. In a statement, Reserve Bank of Australia Governor Glenn Stevens said the cash rate is still at a record low of 2%. The RBA reduced the rate twice this year, in May and February. The Aussie has lost almost 9% in the second quarter. Stevens emphasized there had been further softening in China and east Asia lately, and that the currency is adjusting to the considerable declines in major commodity prices. The Aussie ended at 71.18 US cents from 70.83 US cents ahead of the rate decision.


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