Investing.com - The U.S. dollar traded higher against most of its major rivals during Tuesday’s Asian session as traders sought out safe-haven currencies amid contentious political situations in the U.S. and Europe.
In Asian trading Tuesday, EUR/USD inched down 0.01% to 1.3524 following reports that Italy's Silvio Berlusconi was battling dissent within his own political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Separately, data released on earlier showed that the euro zone's consumer price index rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August, which capped the euro's advance against the greenback. Analysts were expecting a 1.3% reading.
USD/JPY jumped 0.09% to 98.31 after the Bank of Japan said the Tankan Manufacturing Index rose to 12 in the third quarter from four in the second quarter. Analysts expected a third-quarter reading of 7.
Separately, Japan’s Statistic Bureau said Japanese household spending fell 1.6% in September after a 0.1% increase in August. Analysts expected a September increase of 0.1%.
The Statistics Bureau added that the unemployment rate in the world’s third-largest economy unexpectedly rose to 4.1% in September from 3.8% in August. Analysts expected the September reading to be unchanged.
In another report, the Japanese Ministry of Health, Labour and Welfare said that Japan’s average cash earnings fell 0.6% in the third quarter after a 0.1% second-quarter increase. The second-quarter reading was revised down from 0.4%. Analysts expected a third-quarter decline of 0.2%.
GBP/USD inched up 0.04% to 1.6193 while USD/CHF rose 0.07% to 0.9063. USD/CAD added 0.13% to 1.0324 as traders backed away from riskier currencies.
In U.S. economic news out Monday, the Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.
Separately, industry data revealed that Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading. Those data points were strong enough to stoke speculation that the Fed could taper its monetary easing program before the end of this year.
AUD/USD added 0.11% to 0.9334 after the Australian Bureau of Statistics said that Australian retail sales rose 0.4% last month following a 0.1% increase in the prior month. Analysts expected retail sales to rise 0.3% last month.
The Aussie was also supported after the China Logistics Information Center said that Chinese manufacturing PMI rose to 51.1 last month from 51 in August. Analysts expected an increase to 51.5. Readings above 50 indicate expansion.
NZD/USD fell 0.11% to 0.8293. The U.S. Dollar Index rose 0.07% to 80.39.
In Asian trading Tuesday, EUR/USD inched down 0.01% to 1.3524 following reports that Italy's Silvio Berlusconi was battling dissent within his own political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Separately, data released on earlier showed that the euro zone's consumer price index rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August, which capped the euro's advance against the greenback. Analysts were expecting a 1.3% reading.
USD/JPY jumped 0.09% to 98.31 after the Bank of Japan said the Tankan Manufacturing Index rose to 12 in the third quarter from four in the second quarter. Analysts expected a third-quarter reading of 7.
Separately, Japan’s Statistic Bureau said Japanese household spending fell 1.6% in September after a 0.1% increase in August. Analysts expected a September increase of 0.1%.
The Statistics Bureau added that the unemployment rate in the world’s third-largest economy unexpectedly rose to 4.1% in September from 3.8% in August. Analysts expected the September reading to be unchanged.
In another report, the Japanese Ministry of Health, Labour and Welfare said that Japan’s average cash earnings fell 0.6% in the third quarter after a 0.1% second-quarter increase. The second-quarter reading was revised down from 0.4%. Analysts expected a third-quarter decline of 0.2%.
GBP/USD inched up 0.04% to 1.6193 while USD/CHF rose 0.07% to 0.9063. USD/CAD added 0.13% to 1.0324 as traders backed away from riskier currencies.
In U.S. economic news out Monday, the Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.
Separately, industry data revealed that Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading. Those data points were strong enough to stoke speculation that the Fed could taper its monetary easing program before the end of this year.
AUD/USD added 0.11% to 0.9334 after the Australian Bureau of Statistics said that Australian retail sales rose 0.4% last month following a 0.1% increase in the prior month. Analysts expected retail sales to rise 0.3% last month.
The Aussie was also supported after the China Logistics Information Center said that Chinese manufacturing PMI rose to 51.1 last month from 51 in August. Analysts expected an increase to 51.5. Readings above 50 indicate expansion.
NZD/USD fell 0.11% to 0.8293. The U.S. Dollar Index rose 0.07% to 80.39.