Investing.com - The Japanese yen weakened further in Asia on Friday and the Australian dollar hovered near flat with the European Central Bank rate cut impact continuing to work its way across investment decisions in the region.
USD/JPY traded at 105.37, down 0.11%, while AUD/USD held at 0.9347, down 0.01%. EUR/USD traded at 1.2937, down 0.06% and USD/CHF traded at 0.9326, up 0.08%.
In Australia, the AI Group/HIA August construction index is due at 0930 Sydney time (2330 GMT). The index could show a
third straight month of expansion due to residential house and apartment construction and also recovery in commercial construction.
In Japan, there's data showing trade numbers for the first 20 days of August at 0850 Tokyo time (2350 GMT) followed by Japan's September monthly economic report then at 1400 (0500 GMT), the same time as the indices of leading, coincident and lagging indicators for July.
The coincident composite index (CI), which reflects current business conditions, is expected to post the first rise in two months in July, up by around 0.5 point.Economists expect the government to maintain its assessment that the Japanese economy has been "stalling."
Overnight, the dollar extended the strong gains it posted against most major currencies in the wake of robust U.S. service-sector data coupled with a European Central Bank decision to loosen policy, which pummeled the euro.
The U.S. services sector grew at its strongest pace in August since 2005.
The Institute for Supply Management reported earlier that its services index rose to 59.6 in August from 58.7 in July, far surpassing market forecasts for a downtick to 57.5.
A reading above 50 indicates expansion in the sector, and the index offset lackluster U.S. employment data.
The Labor Department reported that the number of individuals filing for first-time unemployment assistance in the U.S. last week rose by 4,000 to 302,000 from the previous week’s total of 298,000.
Analysts had expected jobless claims to rise by 2,000 to 300,000 last week.
Elsewhere, payroll processor ADP reported that its nonfarm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000.
At the same time data showed that the U.S. trade deficit narrowed to the lowest in six months in July.
The euro, meanwhile, came under pressures of its own.
The European Central Bank trimmed its benchmark interest rate to a record-low 0.05% from 0.15%, surprising many market analysts who had expected no change.
The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.
The euro extended losses after ECB President Mario Draghi said the bank will begin an asset-backed securities purchasing program to shore up the recovery and steer the continent away from deflationary decline.
Draghi did not say how much debt the ECB planned to purchase, as further details will emerge in October.
The ECB cut its forecast for growth this year to 0.9% down from 1.0% previously and cut the forecast for 2015 to 1.6% from 1.7%. The bank also lowered its inflation forecast for this year to 0.6% from 0.7% in June.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 83.82.
On Friday, investors will shift their focus from Europe across the Atlantic to the U.S., which will release its August jobs report.