Fundamental Headlines
• USDJPY – Japanese industrial production recorded its lowest monthly output in over a year in January, declining 2.2%. Overall shipments were down as production in electrical machinery fell by 8.2 percent followed by a 4.5 percent decline in transport equipment. In a separate report, Tokyo condominium sales fell 28 percent, declining for the sixth straight month. The current housing slump has weighed on consumer confidence and spending which has increased the calls for a rate reduction, putting pressure on the BoJ. For more news and resources please visit our Yen Currency Room.
• AUDUSD – Australian employers hired 36,700 workers last month, more than twice the 15,000 estimated. Strong Chinese demand has led to job growth in areas such as mining. The tight labor market is fueling wage inflation which has led to the RBA raising rates twice in the last five weeks. Expectations are that hiring will start to slow on the impact of the U.S. slowdown, which is leading to speculation that the central bank may be done tightening for the time being. However, if Asia can continue to show signs of decoupling from the American economy, demand for Australian commodities will continue to grow and stoke inflation, forcing the MPC to consider more hikes. For more news and resources please visit our Australian Dollar Currency Room.
• U.S. To Revamp Credit Rules, Drawing Form Credit Crisis. (link) – Wall Street Journal
• Spitzer Steps Down, Has No Deal To Avoid Prosecution (link)– Wall Street Journal
• Dollar Weakness Leads To Equity Sell Off (link) – Financial Times
• Carlyle Fund Fails To Reach Deal With Lenders (link) – Financial Times
• Treasuries Gain As Carlyle Group Fails To Reach Lender Accord. (link) – Bloomberg
• Obama Tax Plan Focuses on Inequality , Clinton Focuses on Behavior (link) – Bloomberg
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