Investing.com - The U.S. dollar was trading close to a one-week low against the yen on Thursday, as market sentiment was hit by global growth concerns following the release of weak data from China and France, while investors eyed upcoming economic reports from the euro zone.
USD/JPY hit 78.06 during early European trade, the pair's lowest since September 14; the pair subsequently consolidated at 78.11, shedding 0.34%.
The pair was likely to find support at 77.70, the low of September 11 and resistance at 78.46, the session high.
Market sentiment weakened after data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose slightly to 47.8 in September from a final reading of 47.6 in August.
Despite the modest uptick higher, manufacturing activity in China remained in contraction territory for the 11th consecutive month, adding to fears over a deeper-than-expected slowdown in the region’s largest economy.
Separately, concerns over the worsening of the debt crisis in the euro zone resurfaced after preliminary data showed that manufacturing activity in France tumbled unexpectedly in September, dropping to a three-and-a-half year low led by a marked reduction in incoming new business.
Investors were also cautious amid ongoing uncertainty over whether the Spanish will ask for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.
In Japan, official data showed that the trade deficit widened unexpectedly to JPY0.47 trillion in August, from a deficit of JPY0.37 trillion the previous month. Analysts had expected the trade balance to remain unchanged in August.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY tumbling 1.09%, to hit 101.16.
Later in the day, the U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.
USD/JPY hit 78.06 during early European trade, the pair's lowest since September 14; the pair subsequently consolidated at 78.11, shedding 0.34%.
The pair was likely to find support at 77.70, the low of September 11 and resistance at 78.46, the session high.
Market sentiment weakened after data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose slightly to 47.8 in September from a final reading of 47.6 in August.
Despite the modest uptick higher, manufacturing activity in China remained in contraction territory for the 11th consecutive month, adding to fears over a deeper-than-expected slowdown in the region’s largest economy.
Separately, concerns over the worsening of the debt crisis in the euro zone resurfaced after preliminary data showed that manufacturing activity in France tumbled unexpectedly in September, dropping to a three-and-a-half year low led by a marked reduction in incoming new business.
Investors were also cautious amid ongoing uncertainty over whether the Spanish will ask for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.
In Japan, official data showed that the trade deficit widened unexpectedly to JPY0.47 trillion in August, from a deficit of JPY0.37 trillion the previous month. Analysts had expected the trade balance to remain unchanged in August.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY tumbling 1.09%, to hit 101.16.
Later in the day, the U.S. was to release its weekly government report on initial jobless claims, as well as an index of manufacturing activity in Philadelphia.