Franc Slips to 4-Month Low Against Dollar

A Commerce Department report unveiled on Thursday revealed that orders for US-made goods rebounded 1.20% in August following a sharp decline in the prior month, outpacing the 1.10% gain forecast by economists polled by the Wall Street Journal. The better than expected number suggested strong business spending could help offset the economic drag from Hurricanes Irma and Harvey. Separately, the US trade deficit narrowed in August as exports of goods and services jumped to the highest point in over two and half years. The trade gap contracted -2.70% to $42.40 billion, beating the consensus estimate for the August trade deficit narrowing to $42.70 billion whereas July’s shortfall was revised downwards to $43.60 billion. Exports surged 0.40% to $195.30 billion, while imports slipped -0.10% to $237.70 billion. USDCHF rallied to just shy of 0.9800 early Friday, its highest intraday point since May 30^th.

A government report released overnight showed that Japanese real wages grew in August from a year ago, recording the first rise in eight months. In nominal terms, monthly cash earnings increased at an annualized 0.90% pace, reversing from the previous month’s revised -0.60% drop and higher than the 0.50% anticipated by economists. Adjusted for inflation, earnings grew 0.10% in August, compared to a -1.10% decline in the prior month. Separate data from the country’s statistics bureau revealed the average monthly income per salaried household gained 1.00% and 0.20% year over year in nominal and real terms, respectively. The recent batch of wage figures is likely to ease investor concerns about the sustainability of an upturn in Japanese consumer spending. Meanwhile, the AUDJPY pair tumbled below the lows of the prior session in Friday morning trade to currently hover around 87.750.