Machine Orders (Core Machinery Orders) for November -14.4% m.m
- expected -7.3% m/m, prior was +10.7%
- That's the largest drop on the m/m since May of 2014
For the y/y +1.2%
- expected +6.3% y/y, prior was +10.3%
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PPI data also, for December -0.3% m/m
- expected -0.4% m/m, prior was -0.1%
And -3.4% y/y
- expected -3.5% y/y, prior was -3.6%
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Very poor machine orders data while PPI not too far from expectations
USD/JPY has already had a big tumble this past few hours. On the face of it this machine orders data (which is a proxy for capital investment for the next 2 to 3 quarters or so) should be a yen negative as, at the margin, will increase expectations for further BOJ action. I reckon more from the BOJ is unlikely though.
Note also, its a very volatile m/m data point.
