Japan's core machinery orders, a leading indicator of capital spending, rose for the second straight month in July but fell short of expectations. Core machinery orders rose 3.5 percent on month, below expectations for a 4.0 percent rise in a Reuters poll and down from an 8.8 percent rise in June, government data showed on Wednesday.
On a year-on-year basis machinery orders rose 1.1 percent, better than expectations for a 0.6 percent rise and up from a 3 percent decline in June. " we had expected a 5 percent increase month-on-month today's result is not pessimistic," said Junko Nishioka, chief Japan economist, RBS Securities Japan. "Japanese manufacturers are retrieving a growth trend in the second half of this year."
The figures came after Japan revised its second quarter gross domestic product (GDP) reading lower on Monday. The revised figure showed the economy contracted an annualized 7.1 percent, worse than an initial reading of 6.8 percent, marking the biggest contraction since the first quarter of 2009 as a hike in the consumption tax dragged economic growth.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.