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Forex - Japanese yen stronger ahead of data sets on confidence, earnings

Published 06/10/2014, 07:02 PM
Updated 06/10/2014, 07:04 PM
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Investing.com - The Japanese yen strengthened in early Asia on Wednesday ahead of data on business conditions and corporate profits and the Australian dollar was flat ahead of a consumer confidence survey.

Data out of Japan today includes the MOF's BSI Business Conditions data for the second quarter, with a first quarter reading of 12.7 at 0850 Tokyo (2350 GMT). Domestic CGPI for May is at the same time, with a 0.1% gain seen month-on-month.

USD/JPY traded at 102.32, down 0.04%.

Australia has the Westpac Consumer Confidence number for June at 1030 Sydney (0030 GMT). The weekly data have shown a small rise in the last reading after several weeks of weakness.

AUD/USD traded flat at 0.9373.

Overnight, the dollar traded higher against most major currencies on on sentiments interest rate hikes may come sooner rather than later, while the European Central Bank's recent decision to loosen policy also boosted demand for the greenback.

Rising Treasury yields, four months of solid monthly jobs reports and other upbeat economic indicators in the U.S. sent investors chasing the dollar on Tuesday.

Fed officials have said some time will pass between the time monetary authorities wrap up stimulus programs, currently seen taking place at the end of this year, and when interest rates rise, forecast to take place sometime in 2015.

Uncertainty over the length of that window boosted the dollar, as sentiments began to build that rate hikes may come sooner once the Fed concludes its bond-buying program.

The euro, meanwhile, came under pressure on sentiments that policy will remain accommodative for the foreseeable future.

EUR/USD traded at 1.3544, down 0.01%.

Last Thursday, the ECB unveiled a package of measures to battle persistently low inflation rates in the euro area, including cuts to interest rates, though markets still haven't rule out further action if inflation rates don't pick up.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.82.

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