Household Spending m/m comes in at -6.4% against 0.9% consensus

Japan’s Household Spending month over month registered -6.4%, significantly below the consensus expectation of 0.9%. This figure also represents a notable decline from the previous month’s reading of 3.7%. The actual print showed an -811.1% surprise compared to the consensus forecast.

Following the release, market reaction in JPY pairs was generally limited. USDJPY moved -1.0 pips 15 minutes after the release, compared to its median 1-hour move of 8 pips after past releases. EURJPY moved -0.4 pips, against a median 1-hour move of 7 pips. GBPJPY saw a -1.2 pip move, while its median 1-hour move is 10 pips. CADJPY moved -1.2 pips, compared to a median 1-hour move of 5 pips. CHFJPY moved -0.9 pips, with a median 1-hour move of 7 pips. NZDJPY moved -2.5 pips, against a median 1-hour move of 4 pips. AUDJPY moved +1.4 pips, compared to its median 1-hour move of 6 pips. Across these pairs, the measured moves 15 minutes after the release were small relative to their typical median 1-hour moves.