Japanese wages unexpectedly up 2.6% from a year ago in July (data here: Japan – July Labor Cash Earnings: +2.6% (vs. expected +0.9%)
- Climbed by their most since 1997,
- Should be a boost for consumer confidence and household spending
- Details of the report are slightly less encouraging than the headline, but still optimistic:
- Regular earnings grew 0.7% y/y (June was +0.2%) for the most since March 2000
- Wages for overtime hours rose 1.9% (3.9% in June)
More at FastFT (gated)
No particular news to point the finger at, but the USD is surging.
GBP, EUR, yen, AUD, NZD, and CAD all suffering.
The CHF has lost only a little ground, but relatively it’s doing OK
Building approvals for July
For the m/m, +2.5%
- expected +1.9%, prior was -5.0%
For the y/y, +9.4%
- expected +7.8%, prior was +16.0%
A better than expected result
- Private sector housing approvals +1.4% m/m (and +14% y/y)
From the Australian Bureau of Statistics:
Quarterly BoP Current Account balance, for Q2, -13.7bn
- expected -14.0bn, prior was -5.7bn
The ‘net exports as a % of GDP’ for Q2, -0.90
- expected was -0.7%
- prior was 1.40%
Weak data will detract from the Q2 GDP (for release tomorrow, but the RBA will have it for today’s meeting)
This data will subtract about 0.9pp from June quarter GDP
- Weakest yuan fix since June 5
- prior close was 6.1428
- People’s Bank of China (PBOC) to drain 18bn yuan via 14-day repos today
ps. If you’re not in front of your computer, yen crosses are rising strongly … USD/JPY currently around 104.50
AUD/USD – it’s a big day for data and the RBA so take extra care …
- Sellers 0.9375, more 0.9390/0.9410 … stops mingled in above 75
- Buyers 0.9300/10/15
- Buyers 0.9280, 0.9250/60
- Sellers 0.8410/ through 35 and more ahead of and at 0.8450 – some stops mingled above the figure and again above 30
- Buyers 0.8330/35/40 then 0.8300/10/20
ANZ Commodity Price Index (measures the change in the selling price of exported commodities) for August, -3.3% m/m, the second-largest decline of the past 6 months
- Index falls to a 6-month low
- Milk powder and butter prices ‘double-digit declines’, dairy sub-index falls 11.8% m/m to a 23-month low
- Beef prices up 13% m/m (setting a new record high)
- Aluminium prices increased 4% to an 18-month high
- Wool prices recovered 2% from a dip last month
- Commodity prices down 7.2% y/y
- After converting to New Zealand dollars, prices dropped 0.4% m/m and 12.5% y/y
ANZ Commodity Price Index (measures the change in the selling price of exported commodities) for August, -3.3%
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