Forex - Japanese yen weaker ahead of core machinery orders

Investing.com - The Japanese yen was weaker in early Asia on Monday ahead of core machinery data with minutes due by the Federal reserve later this week a focus.

USD/JPY traded at 119.40, up 0.14%, while AUD/USD changed hands at 0.8038, flat. EUR/USD was quoted at 1.1446.

Japan is to publish a report on core machinery orders with a gain of 1.8% expected month-on-month for March, compared to a 0.4% drop in February.

Later, China may release data on house prices for April year-on-year, with a drop of 6.1% seen in March.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted at 93.30, up 0.01%.

Last week, the dollar was lower against the euro and the yen on Friday after a fresh batch of weak U.S. economic data underlined expectations that the Federal Reserve will delay hiking interest rates until the economy is on a stronger footing.

Data showed that U.S. industrial production fell for the fifth straight month in April and another report showed that U.S. consumer sentiment deteriorated to a seven month low this month.

The Federal Reserve said industrial output slid 0.3% after a revised 0.3% decline in March. Economists had expected an increase of 0.1%.

The University of Michigan's preliminary reading of the consumer sentiment index for May came in at 88.6, down from a final April reading of 95.9 and worse than forecasts for a reading of 96.0

The reports came after disappointing data on retail sales and producer inflation earlier in the week and dampened hopes for a second quarter rebound after a sharp slowdown in growth in the first three months of the year.

In the week ahead investors will be turning their attention to Wednesday’s Federal Reserve minutes for clues on the possible timing of a rate increase. Friday’s data on U.S. inflation will also be closely watched.

Meanwhile, the euro zone is to release data on private sector activity and China is to publish preliminary data on manufacturing activity.

On Monday, Switzerland is to release a report on retail sales.

Markets in Canada will be closed for the Patriots day holiday.