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Forex - USD/JPY edges higher as China data curbs safe haven demand

Published 06/14/2011, 03:13 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar edged higher against the yen on Tuesday, after an array of Chinese economic data eased investor concerns that the country would continue to tighten monetary policy, curbing demand for safe haven assets.

USD/JPY hit 80.46 during late Asian trade, the daily high; the pair subsequently consolidated at 80.41, rising 0.21%.

The pair was likely to find support at 79.83, the low of June 9 and resistance at 81.00, the high of June 3.

Earlier in the day, Chinese government data showed that consumer price inflation rose at an annualized rate of 5.5% in May, broadly in line with expectations.

Separate reports showed that producer price inflation rose slightly more-than-expected, while retail sales and industrial production data all showed robust growth.

Meanwhile, the Bank of Japan left its benchmark interest rate unchanged at a record low of 0.1%. The central bank announced a new JPY500 billion lending plan, in a move designed to bolster the earthquake-hit economy by channeling funds to industries.

The yen was also lower against the euro, with EUR/JPY rising 0.61% to hit 116.36.

Later Tuesday, the U.S. was to publish official data on retail sales and producer price inflation.

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