Australian Private Sector Credit Rises in November

Hey Guys it me. So I found this really interesting article and I thought I should share it with you guys because its super informative and many times we dont hear about Aussy land especailly in relation to Japan... so I hope you all digg this!

Loans from Australian banks to consumers and businesses increased in November, according to a report from the Reserve Bank of Australia on Thursday.

Private sector credit rose by 0.1% month-over-month in November, faster than the previous month's flat reading. Nevertheless, the pace of loan expansion slowed on a year-over-year basis, rising only 0.8% compared to October's 1.1% pickup.

The housing sector was the largest beneficiary, picking up 0.7% from October, while loans to businesses fell by 1.0% on the month.

The news bodes well for the Australian dollar given that rate hikes from the central bank have not hindered lending activity in the country.

Although not a top tier economic indicator, USD/AUD rose 7 pips on the release to 0.8964.

Trading nevertheless remains thin on the last trading day of the year, with Japanese markets closed and the Sydney Stock Exchange closing early.

Japanese Manufacturing Activity Accelerates in December

Manufacturing activity in Japan accelerated in December, according to a report from Markit Economics on Wednesday.

The headline manufacturing index rose to a reading of 53.8 for the month, outpacing the previous score of 52.3. A reading above the 50-point threshold suggests economic growth in the sector.

While not a key economic indicator for Japan the news nevertheless adds to the view that the country is indeed recovering.

Indeed, manufacturing in particular had come under some pressure over the last several months as a strong yen weighed on exports, the primary driver of economic growth for Japan. Fortunately a pullback in the currency over the last several weeks appears to have given the manufacturing sector a much needed boost.

The foreign exchange markets failed to act on the release with the yen continuing to weaken after Tuesday’s gains in the U.S. dollar.

The trading environment nevertheless remains quiet with a large number of market participants on vacation during the holiday season. At 2:35 a.m. GMT USD/JPY was up 50 pips at 92.13. Resistance lies at 92.32 after which the pair will make a fresh three-month high.