Forex - USD/JPY firms on U.S. sales figures, Japanese output data

Published 10/15/2012, 09:42 PM
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Investing.com - The dollar rose against the yen on Tuesday after U.S. retail sales beat expectations, while Japanese industrial output figures fell short of market forecasts.

In Asian trading on Tuesday, USD/JPY was trading at 78.83, up 0.23%, up from a session low of 78.72 and off a high of 78.85.

The pair was likely to find support at 78.33, Monday's low, and resistance at 78.86, Monday's high.

The Commerce Department reported earlier that retail sales rose by a seasonally adjusted 1.1% in September, outpacing market calls for a 0.8% increase.

Retail sales in August were revised up to a 1.2% gain from a previously reported increase of 0.9%.

Core retail sales, which exclude automobile sales, rose by 1.1%, beating expectations for a 0.6% increase.

Elsewhere, manufacturing activity in New York state contracted for the third consecutive month, which marred the yellow metal's luster in the session.

The New York Federal Reserve's index of manufacturing conditions improved to -6.2 in October from -10.4 in September, but missed analysts' predictions for a reading of around -4.5

The data sent the dollar weakening against most other currencies as investors sought out risk, though the safe-haven yen weakened on the data as well.

Meanwhile, industrial production in Japan fell more than expected in August.

In a report, the Ministry of Economy, Trade and Industry said that industrial production fell 1.6% in August after contracting 1.3% in July.

Analysts had expected industrial production to fall 1.3% last month.

The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.19% and trading at 126.64 and EUR/JPY trading up 0.30% at 102.15.

On Tuesday, the eurozone will release its latest data on consumer price inflation.

Elsewhere in Europe, the ZEW Institute is to publish data on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment for the wider euro area.







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