Investing.com - The dollar edged higher against the yen on Thursday after data showing that manufacturing activity in China expanded at the fastest rate in seven months in October dampened safe haven demand for the yen.
USD/JPY hit 97.62 during late Asian trade, the session high; the pair subsequently consolidated at 97.47, edging up 0.07%.
The pair was likely to find support at 97.15, Wednesday’s low and a two-week low and resistance at 98.00.
The yen slid after the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5.
The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.
But the dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.
Elsewhere, the yen was lower against the euro, with EUR/JPY up 0.21% to 134.45.
In the euro zone, data released on Thursday showed that the preliminary reading of the French manufacturing index fell to 49.4 in October, from a final reading of 49.8 in September, falling further below the 50 level that separates expansion from contraction.
France’s services index declined to 50.2 this month from 51.0 in September, compared to expectations for a reading of 51.3.
Both Germany and the euro zone were to release data on manufacturing and service sector activity later in the trading day, while the U.S. was to produce data on initial jobless claims, the trade balance and new home sales.
USD/JPY hit 97.62 during late Asian trade, the session high; the pair subsequently consolidated at 97.47, edging up 0.07%.
The pair was likely to find support at 97.15, Wednesday’s low and a two-week low and resistance at 98.00.
The yen slid after the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5.
The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.
But the dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.
Elsewhere, the yen was lower against the euro, with EUR/JPY up 0.21% to 134.45.
In the euro zone, data released on Thursday showed that the preliminary reading of the French manufacturing index fell to 49.4 in October, from a final reading of 49.8 in September, falling further below the 50 level that separates expansion from contraction.
France’s services index declined to 50.2 this month from 51.0 in September, compared to expectations for a reading of 51.3.
Both Germany and the euro zone were to release data on manufacturing and service sector activity later in the trading day, while the U.S. was to produce data on initial jobless claims, the trade balance and new home sales.