🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Forex - AUD, JPY remain weaker after business surveys show soft spots

Published 12/09/2013, 08:22 PM
Updated 12/09/2013, 08:25 PM
USD/JPY
-
AUD/USD
-
Investing.com - The Australian dollar held early weakness after a bank survey on business confidence and conditions painted a mixed picture, while an official fourth quarter business survey in Japan posted the first drop for sentiment in four quarters, keeping the yen a tad weaker.

AUD/USD traded at 0.9092, down 0.19%, after the National Australia Bank survey for November showed business conditions at +5 from +6 in October and business confidence at -3 from -4 in October.

In Japan, the sentiment index for major Japanese firms fell to 8.3 points in the fourth quarter from a record high of 12.0 points in the third quarter. Later in the day, the Japan November consumer confidence survey is due at 1400 local time (0500 GMT) with a forecast of 44.2 points from 41.2 points in the previous survey.

USD/JPY traded at 103.30, up 0.03%.

Overnight the dollar traded mixed to lower against most major currencies as investors digested data and tried to predict when the Federal Reserve will begin to taper its monthly asset purchases.

Jobs data released Friday that was stronger than expected kept expectations firmly in place that the Federal Reserve will begin scaling back its USD85 billion in monthly bond purchases in the coming months, which weaken the dollar to spur recovery.

The U.S. economy added 203,000 jobs in November, beating expectations for an 180,000 increase and up from a downwardly revised 200,000 rise the previous month.

Earlier Monday, Fed St. Louis President James Bullard said the chances of a Fed decision to taper asset purchases are growing now that the labor market has shown improvement.

“A small taper might recognize labor market improvement while still providing the Committee the opportunity to carefully monitor inflation during the first half of 2014,” Bullard said in prepared remarks of a speech he delivered earlier.

“Should inflation not return toward target, the Committee could pause tapering at subsequent meetings.”

Many investors expect tapering to begin early in 2014, though some have not ruled out the possibility of a start date beginning at the Fed's Dec. 17-18 policy meeting, the uncertainty of which allowed the dollar to weaken and stocks room to rise.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 80.15.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.