Dollar slightly lower against yen after U.S. data The U.S. dollar traded slightly lower against the Japanese yen during Friday’s Asian session as traders mulled over some U.S. data. In Asian trading Friday, USD/JPY inched down 0.01% to 97.38 after earlier trading as low as 97.06. The pair was likely to find support at 96.84, Tuesday’s low and resistance at 98.42, Wednesday’s high. The yen firmed up after Japanese Finance Minister Taro Aso said Thursday that a corporate tax cut would not have any immediate impact on the economy. The yen has been somewhat volatile as Japan considers a sales tax increase that could be offset by lower corporate taxes. Market observers believe a higher sales tax could be damaging to efforts to bolster the world’s third-largest economy. In U.S. economic news out Thursday, the U.S. Labor Department said initial claims for jobless benefits fell by 15,000 last week to 320,000. That is lowest level since October 2007. The less volatile four-week average fell 4,000 to 332,000, the lowest reading since November 2007. The Labor Department said U.S. consumer prices rose a seasonally adjusted 0.2% last month. Excluding energy and food, the core consumer-price index also rose 0.2% Overall CPI rose 0.5% and has risen 2% in the past year. The New York Federal Reserve said its Empire State general business conditions index fell to 8.24 from 9.46 in July. Economists expected a reading of 10. Readings above zero indicate expansion. The index for the number of employees climbing to 10.84 from 3.26. The average employee workweek index jumped to 4.82 from minus 7.61, according to Reuters The yen’s recent firming against the greenback has prompted speculation the Bank of Japan may need to step up its easing efforts a time when markets are concerned about a potentially imminent tapering of the Fed’s stimulus program. Elsewhere, AUD/JPY inched up 0.01% to 89.07 after Japan’s Economics Minister Akira Amari said Thursday Japan is halfway out of deflation. The news is significant for the Aussie because Japan is Australia’s second-largest trading partner after China. NZD/JPY rose 0.32% to 78.88.
Posted on: Fri, 16 Aug 2013 05:36:28 +0000
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