Forex - Dollar mostly higher following Asian data points

Investing.com - The U.S. dollar traded higher against most of its major rivals during Wednesday’s Asian session following the release of some key economic data in the region.

In Asian trading Wednesday, EUR/USD inched down 0.04% to 1.3219 as traders await a series of euro zone indicators on manufacturing and service-sector activity due Wednesday, which may provide fresh steering currents for the market.

USD/JPY rose 0.12% to 99.57 after data showed Japan’s trade balance was in deficit for a 12th consecutive month. Japanese exports rose 7.4% last month, but that was below the 10.3% increase analysts expected.

However, the weak yen is also increasing the cost of energy imports to resource-starved Japan, leading to another trade deficit. Still, first-quarter data showed Japan was the fastest growing major economy in the world.

Exports to China rose 4.8% while exports to the U.S. surged 14.6% compared with 16.3% in May, according to the data. China and the U.S. are Japan’s two largest export markets. Imports rose 11.8%, but that was below the 13.6% increase analysts expected. Japan’s overall trade deficit was JPY180.8 billion. Analysts expected a deficit of JPY160.6 billion.

GBP/USD inched up 0.03% to 1.5376 while USD/CHF nudged higher by 0.01% to 0.9349. USD/CAD rose 0.09% to 1.0298 even after the American Petroleum Institute said U.S. oil inventories fell by 1.4 million barrels, well below the 2.6 million barrel decline forecast by analysts. API said gasoline stockpiles fell by about 900,000 barrels while distillate supplies fell by 700,000 barrels.

AUD/USD fell 0.10% to 0.9287 ahead of the flash reading of China’s June PMI data. NZD/USD rose 0.12% to 0.8008 after New Zealand reported a June trade surplus of NZD414 million, far better than the NZD100 million analysts expected.

The U.S. Dollar Index rose 0.07% to 82.13.