TOKYO (MNI) – New vehicle sales in Japan jumped 46.7% from a year
earlier to 290,789 units in August, posting the 13th straight month of
year-on-year rises, backed by tax breaks for buying low emission
automobiles, data released by the Japan Automobile Dealers Association
showed on Wednesday.
Consumers rushed to car dealerships before the government finishes
providing subsidies for buying energy-efficient vehicles by the end of
September. It will continue applying lower tax rates to buying and
owning low-emission cars and trucks.
Until recently, the pace of increase continued to decelerate to
+15.0% in July from +20.6% in June, +28.0% y/y in May and +33.5% in
April. In August 2009, domestic new vehicle sales rose 2.3%, posting
their first y/y rise in 13 months.
In August passenger car sales surged 49.0% from a year earlier to
267,777 units (vs. +15.5% y/y in the previous month) as August 2009
sales were weak.
Truck sales rose 23.0% to 21,740 units, posting the seventh
straight y/y rise after rising 9.0% in July, while sales of buses jumped
54.0% to 1,272 units, marking the fourth y/y rise in a row vs. +20.9% in
the previous month.
Separately, the Japan Mini Vehicle Association reported that
domestic sales of new mini vehicles (with engine displacement of less
than 660 cc) rose by 21.7% in August from a year earlier to 134,197 (the
highest for the month of August), posting the eighth straight y/y gain
following +8.6% in the previous month.
In January 2010, mini vehicle sales showed the first y/y rise in 15
months, up 0.7%.
** Market News International Tokyo Newsroom: 81-3-5403-4833 **
EUR/USD up at 1.2703 from North American close Tuesday down around 1.2675. General risk sentiment has seen a little improvement in wake of decent Australian (Q2 GDP) and Chinese (August PMI) data.
Euro zone data due today:
06:00 GMT: German retail sales for July expected +0.5% m/m, +1.2% y/y
07;45 GMT: Italian manufacturing PMI for August expected 65.8 from previous 66.9
07:50 GMT: French manufacturing PMI for August (final) expected 54.7
07:55 GMT: German manufacturing PMI for August (final) expected 58.2
08:00 GMT: Euro Zone manufacturing PMI for August (final) expected 55.0
08:00 GMT: Italian hourly wages for July
Talk buy orders clustered down at 1.2650/60 and again at 1.2600/20. Stops below there. Sell orders noted up at 1.2730/50. Not sure where buy stops gathered.
TOKYO (MNI) – The average price of regular gasoline in Japan this
week fell to Y133.5 ($1.58) per liter, or $6.00 per gallon, from Y133.6
last week, the 14th consecutive weekly drop, according to data released
by the Oil Information Center on Wednesday.
The price was still higher than the Y126.5 per liter price of a
Retail gasoline prices were on a general uptrend from mid-January
2009 until May 31, when they began to ease.
This week the average price of high-octane gasoline stood at Y144.3
per liter, down from Y144.4 last week. It hit a record high of Y196.0 on
Aug. 4, 2008.
The average price for diesel oil stood at Y113.7 per liter this
week, down from Y113.8 last week. It compared with the record high of
Y167.4 hit on Aug. 4, 2008.
The average over-the-counter price of kerosene for heating stood at
Y1,407 per 18 liters, down from Y1,408 from last week. It posted a
record high of Y2,378 on Aug. 11, 2008.
The average home-delivery kerosene price this week was at Y1,523
per 18 liters, down from Y1,524. It hit a record high of Y2,484 on Aug.
** Market News International Tokyo Newsroom: 81-3-5403-4833**
- Australian Q2 GDP +1.2%, fastest growth in 3 years
- Australian stockmarket rises 2%
- China’s official August PMI 51.7
- HSBC China PMI 51.9, up from 49.4
- Australia July manufacturing index 51.7
- Spain’s Zapatero: Debt auctions show that Spain can meet financing costs
- Japan PM Kan and his challenger Ozawa put forward their policy platforms; the latter supports direct FX intervention
- Regional stockmarkets rise by 0.5% or more
Risk trades have benefitted today from the strong Australian GDP numbers and also the improving Chinese PMI. AUD/JPY has risen by 1.5% and EUR/CHF has also risen by 50 pips.
USD/JPY opened the session on its lows at 84.05 but no-one was willing to stay short in fear of some direct intervention. None eventuated but the aforementioned economic data fuelled some buying of the JPY crosses. Ranges: USD/JPY 84.03/59; EUR/JPY 106.60/107.42; AUD/JPY 74.89/76.08.
The AUD has risen strongly across the board after the excellent GDP numbers and the promising Chinese PMI. Range: AUD/USD .8913/.9003.
EUR/USD has also benefitted primarily from demand in the crosses. Ranges: EUR/USD 1.2664/1.2708, EUR/CHF 1.2868/1.2925
Cable traded pretty much in line with the EUR, with the EUR/GBP cros confined to a 20 pip range. Cable 1.5337/91, EUR/GBP .8252/72.
Markets: Nikkei +0.6%, HK +0.4%, Kospi +1.3%, All Ords +1.8%. Gold $1248/oz. Oil $72.25/bbl.
- Decent sized corporate offers currently being worked through around .9000
- Stop-loss buy orders starting above .9030
- Heavier stops above .9080
The Australian All Ords index has gotten a big boost from the strong GDP numbers and the encouraging Chinese PMI. Australian shares are 1.8% higher, the Korean Kospi is +1.3% and the Nikkei and Hang Seng are around 0.5% higher.
Oil has risen by 0.5% after the overnight sell-off, currently at $72.25/bbl and Gold is steady after big gains overnight, currently trading at $1248/oz.
AUD/JPY is 1.5% higher on the day but a quick look at the daily chart shows us that this pair is still roughly in the middle of a consolidative wedge pattern with parameters at 73.50 and 78.50. Having stalled at a major 61.8% level at 88.00 and then initiated a downtrend, this wedge pattern is expected to break lower rather than higher over the next few weeks. The bearish long term MAs would also suggest more downside.
PM Kan and challenger Ozawa are putting forward their policy platforms and the latter is being more forthright about what he would do to stem the rise of the JPY.
This backs up the earlier official PMI figure.
AUD/JPY as the main magnet for risk trades in Asia is trading at intraday highs.
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