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Forex - Aussie weaker after mixed China prices data, yen stronger

Published 06/08/2016, 10:43 PM
Updated 06/08/2016, 10:44 PM
© Reuters.  Aussie dips after China prices
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Investing.com - The Aussie fell and the yen gained further in Asia on Thursday with China prices mixed after consumer levels eased, but producer fell less than expected.

USD/JPY changed hands at 106.67, down 0.30%, while AUD/USD was quoted at 0.7478, down 0.15%, with the currency's fortunes closely linked to trade with China.

In China, CPI data for May showed a drop of 0.5% month-on-month, more than the 0.2% fall seen, and 2.0% gain year-on-year, less than the 2.3% increases expected, while producer prices eased 2.8%, less than the 3.3% year-on-year drop expected.

Earlier in Japan, core machinery orders for April plunged 11.0%, compared with a 3.8% drop seen month-on-month and at a 8.2% decline year-on-year compared with a 2.3% drop seen.

NZD/USD traded at 0.7120, up 0.39%, after the New Zealand central bank held the official cash rate steady at 2.25% and signaled room for easing.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last down 0.14% at 93.46.

Overnight, the dollar fell to fresh one-month lows against the other major currencies in quiet trade on Wednesday, as uncertainty over the timing of the next U.S. rate hike continued to dampen demand for the greenback.

Sentiment on the greenback remained fragile after Federal Reserve Chair Janet Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

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