Investing.com - The Aussie fell on Thursday after weaker than expected jobs data and the yen held nearly flat after trade showed sharper falls that seen for imports and exports with China data ahead and the latest views of the Fed on interest rates being assessed.
Consumer prices in China rose 0.5% in January month-on-month, matching expectations and at the same level as the previous month.
For a year-on-year basis, consumer prices gained 1.8%, below the 1.9% gain expected, and compared to 1.6% from the previous month.
Producer prices fell 5.3%, compared to a 5.4% drop seen, and to a fall of 5.9% in the previous month.
"The pick-up in inflation last month is mostly seasonal. That said, underlying price pressures also appear to be rising which ought to help ease any lingering concerns over deflation," Capital Economics said in a note to clients.
"The key driver was a seasonal jump in food price inflation, from 2.3% y/y to 4.1%. Food prices always rise ahead of Chinese New Year but due to the shift in the timing of the holiday, more of this increase took place in January this year relative to 2015."
The People's Bank of China set the yuan's central parity rate against the U.S. dollar at 6.5152 Thursday, stronger than Wednesday's 6.5237.
The Federal Reserve's January meeting provided little indication that the U.S. central could accelerate its pace of tightening in the foreseeable future.
"Many participants indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalization had inclined them toward keeping the federal funds rate at its effective lower bound for a longer time," the FOMC said in the minutes.
"Some observed that, even with these risks taken into consideration, the federal funds rate may have already been kept at its lower bound for a sufficient length of time, and that it might be appropriate to begin policy firming in the near term."
USD/JPY changed hands at 113.87, down 0.20%, while AUD/USD eased 0.28% to 0.7164.
In Japan the trade balance for January came in at ¥646 billion, near the ¥680 billion seen along with imports that fell 18%, more than the expected down 16% and exports dropped 12.9%, more than the 11.3% year-on-year seen.
Prolonged financial market turmoil would hurt the real economy, although risk aversion is unlikely to trigger a global financial system crisis as seen in the past, Bank of Japan board member Koji Ishida said Thursday.
In Australia, employment data fell by 7,900 jobs, off the 15,000 jobs seen added in January for an unemployment rate of 6.0%, higher than the 5.8% expected.
"The 7,900 decline in employment in Australia is probably just a continuation of the data moving back to reality after the unbelievable strength late last year rather than a sign that the concerns over the global economy are giving Australian employers the jitters," Capital Economic said in a note to clients.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.02% to 96.88.
Overnight, the dollar held steady against the other major currencies on Wednesday, after the release of mixed U.S. economic reports as markets turned their attention to the minutes of the Federal Reserve’s most recent policy meeting. The Federal Reserve said that industrial production increased by 0.9% last month, beating expectations for a gain of 0.4%.
Earlier Wednesday, the U.S. Commerce Department said that housing starts fell 3.8% to hit 1.099 million units last month from December’s total of 1.143 million units. Analysts had expected a rise 2.5% to 1.170 million.
Meanwhile, the number of building permits issued declined 0.2% to 1.202 million units from 1.204 million. Economists had forecast a drop of 0.1% to 1.200 million units in January. A separate report showed that U.S. producer prices inched up 0.1% last month, though the forecast was for a drop of 0.2% and after a 0.2% decline in December.
Year-over-year, the producer price index declined 0.2%, compared to expectations for a 0.2% fall. The core producer price index moved up by 0.4% in January, above forecasts for a gain of 0.1%.