Investing.com - The Australian dollar rose during Asian trading hours on Thursday on an unexpected trade surplus in December and better than expected retail sales.
The Australian Bureau of Statistics reported on Thursday that country’s trade surplus widened to AUD468 million in December from AUD83million in November. Markets were instead expecting a trade deficit of AUD300 million. Country’s retail sales for December also rose by 0.5% against the expected rise of 0.4%. There was a 0.7% rise in November.
In Japan Ministry of Finance’s weekly international transactions in securities data showed that in the week ending 1 February Japanese investors sold a net JYP 1,815.8 billion in foreign bonds. For the week ended Jan 25, this Japanese investors sold a net JYP357.0 billion in foreign bonds.
MOF also said that it auctioned JPY 5.303 trillion of 13 week treasury discount bills with the lowest price of 99.9875 to yield 0.0501%.
In a speech to business leaders in Miyazaki, BOJ Deputy Governor Kikuo Iwata said that, "even if the year-to-year rate of increase in the consumer price index reaches 2%, unless the bank is convinced that inflation is likely to remain around that level in a stable manner, it won't suddenly end monetary easing.”
Markets in China remain closed for the weeklong lunar New Year holidays, and are due to reopen Friday.
USD/JPY rose 0.06% at 101.51, AUD/USD was up 0.58% at 0.8962, while NZD/USD rose 0.28% at 0.8236.
On Wednesday the greenback traded mixed to lower against most major currencies after lackluster data left markets unclear over the pace of U.S. recovery.
The greenback softened though it did come off earlier lows after the Institute for Supply Management reported that its services purchasing managers’ index came in at 54.0 in January, up from 53.0 in December.
Analysts had expected the index to rise to 53.7.
The employment component of the index rose to its highest level since November 2010.
The data eased concerns over a possible slowdown in U.S. recovery after Monday’s ISM manufacturing index showed that activity slumped to a seven-month low in January, which was partially the product of rough winter weather.
Elsewhere, payroll processor ADP reported that private-sector non-farm payrolls rose by 175,000 in December, below expectations for an increase of 180,000, which weakened the dollar.
Losses were limited, though, as investors concluded that a string of blizzards and bitter cold snaps may have prompted businesses to put off hiring early this year.
Friday’s official U.S. jobs report is expected to show that jobs growth rebounded in January after unseasonably cold weather in December kept gains down to 74,000.
Lackluster economic indicators reminded investors that the Federal Reserve will trim its USD65 billion monthly bond-buying program on a gradual basis, or even leave it on hold if need be, while policy tightening remains far off on the horizon.
Stimulus tools tend to weaken the dollar by suppressing interest rates to spur recovery.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.04% at 81.20.
On Thursday, the U.S. is to publish data on its trade balance as well as its weekly report on initial jobless claims.