Japan Machine Tool Orders Up 2.4% From Previous Year

Takeaway: Major manufacturers’ machine tool orders up 2.4% for March -> Numbers suggest a positive economic outlook -> USD/JPY continues to fall following BOJ’s earlier decision to leave policy on hold

Japanese machine tool orders for March rose 2.4% from a year earlier. The results, put together by the Japan Machine Builders’ Association, beat February’s 8.6% decline in machine tool orders when compared to the previous year.

The report tracks the amount of machine tool orders placed by major manufacturers and is a good indicator of future economic outlook and business confidence.

USD/JPY fell six points following the release, but the drop could be attributed to the earlier fifty point fall following the Bank of Japan’s decision leave its interest rate and easing policy on hold.