Yen Edges Higher on Data

The yen crept higher against the dollar in early Tokyo trading, edging up to 113.40 upon the release of a sharply higher than expected Japan machinery orders report. The core July machinery orders shot up by 17% m/m, far outpacing estimates for a 5.0% rise. The annualized core machinery orders also defied calls for a 2.0% decline, instead climbing by 8.0%.

Meanwhile, Japan’s economics minister Ota said he does not see a large change in Japanese economic conditions. He also expressed caution on whether the US economy can make a soft landing. Finance Minister Nukaga said he expects the BoJ to set appropriate policy with an eye on the global economy and market moves.