Japan data August Core Machinery Orders -0.5% m/m (expected +0.4%) & -7.7% y/y (-7.3%)

<p>Japan August Machinery Orders come in at a miss. </p><p>Earlier this week were data from the Japan Machine Tool Builders' Association (JMTBA):</p><ul><li> preliminary machine tool orders for September -11% y/y (August was -18%)</li></ul><p>The drop was driven by domestic (lack of) orders but wasn;t as bad as some estimates I had seen of -20%. </p><p>BoA comments:</p><ul><li>September may have benefited from a quarter-end effect, especially after the steep declines we saw in domestic orders over the past few months</li><li>m/m growth was above seasonal trends for both domestic and export orders, and we see no reason to believe that underlying trends are worsening</li><li>we believe we are at or approaching the y/y bottom in orders trends … (but) we believe it is still too early to call the bottom</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.