Investing.com – USD/JPY fell on morning Asian trade on Monday as the markets awaited Japan’s December trade balance data.
Japan's December trade balance is due at 0850 Tokyo time (2350 GMT) with expectations for a deficit of JPY1.33 trillion with exports seen up 17.8% and imports up by 26.1%.
At the same time, the Bank of Japan will issue the minutes of its Dec. 19 to 20 policy board meeting. In remarks at the weekend in Davos, Bank of Japan Governor Haruhiko Kuroda said the three-pronged policy approach of the Japanese government under Prime Minister Shinzo Abe is making progress and the monetary policy component is proving especially fruitful.
AUD/USD traded rose 0.10% at 0.8691, USD/JPY traded down 0.40% at 101.92, while NZD/USD traded up 0.12% at 0.8235.
Australian markets are closed for a national holiday.
A broad based selloff in financial markets accelerated on Friday as investors sold off stocks and emerging market currencies amid expectations that the Federal Reserve will continue to taper stimulus measures.
Emerging market currencies have been hard hit since the Fed announced plans last month to begin scaling back its asset purchase program, while worries over political instability and the outlook for growth for some countries also weighed.
On Wednesday’s outcome of the Federal Reserve’s monthly meeting will be in focus amid expectations for a reduction to USD65 billion from the current USD75 billion in the bank’s stimulus program.
Euro zone data on inflation and unemployment will also be closely watched.