On Wednesday, the statistic bureau of Japan released the export data which was rising for about 48.6 percent year – over – year in June. That was a little lower than the previous month. 

The export number this time is successfully higher than the economist forecast for the 46.2% increase. Furthermore, the Japan’s export has soared by 23.2% in the first quarter of this year. 

That was higher than the first quarter achievement in the last 5 year. Based on the destination country, export to China which becomes the biggest trading partner for Japan is also increasing. 

It is noted 27.7% higher leaded by the equipment chip maker, raw materials, and plastics. Meanwhile, the expprt to the United States grows up by 85.5% because of the increasing automotive and spare parts delivery. 

The Prospect can be Brighter

The fast economy growth in China might be subside. However, it seems that the prospect will still so bright because the stimulus step has been taken by the government there. 

The recovery in the United States and Europe area will help the Japanese increasing export trend. That is supported by the capital goods and car delivery. It was stated by Takeshi Minami. 

In a separated release, the Japan’s import data has a significant increase from 27.9% to become 32.7%. That is higher than the expectation of 29.0 percwbt growth so far. 

That growth has bee running in several months lately and reflecting the domestic demand rebound amidst the economy recovery. The export-import trend there is quite impressive. 

The USD/JPY tries to Continue its Strength

Although the impressive trend can be seen, the market starts to worry about the impact caused by the lockdown steps. The reason is to Handle and stop the delta coronavirus variant. 

Most of the economists believe that this restriction will break the economy recovery momentum and press the Japan’s quarter GDP. That may be contracted again in this third quarter. 

The release of that export – import is not supporting the currency movement so far. It is especially for the Yen versus the US dollar. When this news was released, the USD/JPY is in 109.90.

It means that the pair is 0.06 percent stronger than the daily open price. Although its movement is limited, that pair is still in a bullish bias especially after the 0.37% increase happened before. 

The Meeting Minutes Published by the RBA

On Tuesday, the Reserve Bank of Australia or RBA published the July meeting minute which showed the optimism of the policy maker. That is to the economy condition right now. 

The recovery seemed to have a better situation than the expectation, especially in the employment market sector. That thing becomes a reason why RBA reduce the obligation purchase. 

The reduction is from $5 billion to become $4 billion every week per September this year. However, the delta corona cases increase and the lockdown in Australia may brings an impact. 

The policy makers there may consider the tapering plan again. It is because the New South Wales just extending the restriction until the last of July, followers by Victoria and South Australia.

The Consumer Trust Index Declines 

Following that policy, the customer price index decreased by 5.2%. The sentiment to the national economy prospect is having the same trend as well. The CBA analyst gave her statement. 

Belinda Allen stated that the situation which is developing in the greater Sydney and Victoria will cause the third quarter GDP contraction. The scale is still measured due to the lockdown uncertainty. 

However, the delta variant characteristic is more infectious. That is why; the restriction and lockdown opening will be done carefully. The investors have a plan to stay away from the risky assets.