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Forex - Dollar edges lower against yen

Published 05/02/2013, 03:18 AM
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EUR/JPY
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Investing.com - The dollar edged lower against the yen on Thursday, amid ongoing concerns over the outlook for the U.S. recovery following Wednesday’s weak economic data.

USD/JPY hit 97.07 during late Asian trade, the session low; the pair subsequently consolidated at 97.23, sliding 0.16%.

The pair was likely to find near-term support at 97.01, Wednesday’s low and resistance at 98.19, the high of April 29.

The dollar remained under pressure after ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 119,000 jobs in April, well below expectations for an increase of 150,000.

A separate report showed that growth in the U.S. manufacturing sector slowed in April.

The Federal Reserve recommitted to its USD85 billion a month asset purchase program following Wednesday’s policy meeting and indicated that it could increase or decrease the monthly amount, depending on the outlook for inflation and employment.

Elsewhere, data on Thursday showed that the final reading of China’s HSBC manufacturing purchasing managers' index dropped to 50.4 in April from 51.6 in March and slightly lower than the preliminary reading of 50.5, as new export orders fell.

The yen was higher against the euro, with EUR/JPY down 0.34% to 127.91.

Investors were awaiting the outcome of a European Central Bank policy meeting later in the day amid mounting expectations for a rate cut after recent weak economic data indicated that the outlook for the euro zone was deteriorating.

The U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance later in the trading day.



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