Forex - USD/JPY down on sunny Japan data

Published 01/30/2012, 10:31 PM
Updated 01/30/2012, 10:33 PM
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Investing.com - The dollar slumped against the yen on Tuesday as better than expected household spending and industrial production numbers in Japan offset higher than expected unemployment rates there.

USD/JPY hit 76.22 in Asian trading on Tuesday, down 0.17% and up from a session low of 76.20 and off from a high of 76.41.

The pair sought to test technical support at 76.13 and resistance at 76.43.

In Japan, the yen remains strong thus hampering exports to foreign markets, which helped send unemployment rates climbing to 4.6% in December, higher than expected 4.5% rate.

The country's labor market continues to reel from the devastating 2011 earthquake and tsunamis.

However, surprisingly strong household spending and industrial production figures boosted demand for the currency.

The yen, meanwhile, was down against the euro as well as the pound, with EUR/JPY gaining 0.23% to 100.58  and GBP/JPY up 0.02% at 119.97.

Later Tuesday, Japan will unveil housing starts figures, while in Australia, home sales data will emerge.

Switzerland will release a report by UBS on its consumptions indicator, a combined reading of five economic indicators.  

Germany will unveil official data on retail sales as well as data on employment changes.
Meanwhile, the eurozone will release its latest unemployment rates as well.

The U.S. is to produce government data on employment cost inflation, a key gauge of consumer inflation, followed by industry data on house price inflation and the purchasing managers’ index in Chicago. The country is also to release data on consumer confidence.

Also in the U.S., the S&P/Case-Shiller House Price Index will release as well.





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