Household Spending m/m (JPY) comes in at 0.5% against -3.9% consensus

Japan’s Household Spending month over month for September came in at 0.5%, significantly exceeding the consensus expectation of -3.9%. This marked a substantial improvement from the previous month’s reading of -6.4%. The actual figure represented a 112.8% positive surprise compared to analyst forecasts.

Following the release, JPY pairs generally saw downward movement, indicating JPY strength. Fifteen minutes after the data, USDJPY was down 11 pips, while EURJPY and CHFJPY were also down 11 pips. GBPJPY registered a 15 pip decline. AUDJPY moved down 9.3 pips, CADJPY was down 7.8 pips, and NZDJPY declined by 7.2 pips. These initial moves were generally larger than the median 1-hour moves observed after past releases for these pairs, with some approaching or reaching their typical top-quarter move thresholds. For instance, CHFJPY’s 11 pip decline matched its typical top-quarter move.