The Japanese yen remains steady in range after release of a bunch of economic data. Unemployment rate dropped to 3.5% in August, hitting a three month low. Retail sales rose 1.2% yoy versus expectation of 0.3% yoy. Household spending, however, dropped -4.7% yoy versus expectation of -3.6% yoy. Labor cash earnings rose 1.4% yoy versus expectation of 1.0% yoy. The more important piece of data, industrial production, dropped -1.5% mom versus expectation of 0.2% mom rise. The production data suggests that manufacturing sector remains weak. Given the generally weak global economy and slow down in China, if would be hard for Japan manufacturing to pick up a recovery in the near future. Prime minister Shinzo Abe recently talked up the idea of a supplementary budget and markets would look forward to some more details about such idea from Abe.
New Zealand dollar recovered mildly today in spite of some weak economic data. The NBNZ business confidence dropped to 13.4 in September comparing to prior month's 24.4. Building permits was unchanged mom in August. The China HSBC PMI manufacturing was revised down to 50.2 in September. HSBC economist for China noted that the data suggested that manufacturing activity in China continues to expand at "a slow pace". And, "risks to growth are still on the downside and warrant more accommodative monetary as well as fiscal policies."
Looking ahead, a key focus in Eurozone CPI flash for September, which is expected to drop to 0.3% yoy. Germany will release employment data while UK will release Q2 GDP final, current account and index of services. Canada will release July GDP, IPPI and RMPI. US will release S&P Case Shiller 20 cities hour price, Chicago PMI and consumer confidence.