Investing.com -The dollar was higher against the yen on Tuesday, as encouraging service sector data from China helped offset concerns over the risk of a possible U.S. default as the U.S. government shutdown continued into a second week.
USD/JPY hit 97.19 during late Asian trade, the session high; the pair subsequently consolidated at 97.08, gaining 0.40%.
The pair was likely to find support at 96.56, the session low and a two-month low and resistance at 97.47, the high of October 4.
Data released on Tuesday showed that China’s HSBC services purchasing managers’ index dipped to 52.4 from August's reading of 52.8, but remained well above the 50 level that separates expansion from contraction.
In the U.S., President Barack Obama repeated Monday that he is willing to negotiate with congressional Republicans on a range of topics, including healthcare and energy policy, but only after the government is reopened.
Mr. Obama also called on Congress to raise the government borrowing limit ahead of the October 17 deadline, the date which the Treasury Department has estimated the U.S. could risk a default.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.34% to 131.73.
The International Monetary Fund was due to release its latest World Economic Outlook later in the day. In the euro zone, Germany was to publish data on factory orders.
USD/JPY hit 97.19 during late Asian trade, the session high; the pair subsequently consolidated at 97.08, gaining 0.40%.
The pair was likely to find support at 96.56, the session low and a two-month low and resistance at 97.47, the high of October 4.
Data released on Tuesday showed that China’s HSBC services purchasing managers’ index dipped to 52.4 from August's reading of 52.8, but remained well above the 50 level that separates expansion from contraction.
In the U.S., President Barack Obama repeated Monday that he is willing to negotiate with congressional Republicans on a range of topics, including healthcare and energy policy, but only after the government is reopened.
Mr. Obama also called on Congress to raise the government borrowing limit ahead of the October 17 deadline, the date which the Treasury Department has estimated the U.S. could risk a default.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless Democrats agree to talks about spending cuts.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.34% to 131.73.
The International Monetary Fund was due to release its latest World Economic Outlook later in the day. In the euro zone, Germany was to publish data on factory orders.