Japanese Retail accelerates while Indutrial Production Sunk, Yen Little Changed


THE TAKEAWAY: Japanese data showed mixed results > Industrial production contracted while retail trade accelerated > Yen little changed

The Yen was little changed as Japan’s export led economy showed mixed signals. Consumer prices declined -0.4 percent in August, year-over-year while industrial production contracted -4.3 percent over the same time horizon.

The labor market showed marginal strength as the jobless rate ticked lower in August to 4.2 percent from 4.3 percent. The Historical average is 2.7 percent. Retail trade grew by 1.8% in August which is up from July where retail trade contracted by -0.8 percent.

Earlier this month the Bank of Japan said they were going to monitor strength in exports and domestic spending and would factor such readings into their monetary policy decision making. Moreover, the central bank blamed a strong yen as a factor underlying the shape of Japan’s economy. Japan’s currency has a tendency to trade counter to risk trends as investors may want to hold Yen for safety as markets become volatile.

AUD/JPY, 4 Hour Chart

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