Investing.com - The dollar traded higher against the yen on Wednesday after stronger-than-expected housing data out of the U.S. fueled talk the Federal Reserve will hold off on whispered plans to stimulate the economy, which would weaken the greenback.
Investors shrugged off soft consumer confidence figures, meanwhile.
In Asian trading on Wednesday, USD/JPY was trading at 78.60, up 0.12%, up from a session low of 78.57 and off a high of 78.63.
The pair was likely to find support at 78.46, the low from Aug. 28, and resistance at 78.84, the high from Aug. 27.
Earlier in the U.S., consumer confidence plunged for August to its lowest levels in 9 months.
The Conference Board said earlier that its consumer confidence index dropped to 60.6 in August from 65.4 in July, though still well above the 45.2 index level of August 2011.
Analysts were expecting a reading of 66.0.
However, data from the U.S. housing sector, which threw the country into recession and continues to weigh on its recovery, came in better than expected.
The Standard & Poor's/Case-Shiller home price index released earlier showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The housing figures boosted spirits among investors eager to see upward revisions to the second quarter's 1.5% GDP growth figure due out later Wednesday.
More sustained growth rates would put to rest for now talk the Federal Reserve will stimulate the economy with a new round of quantitative easing, which sees the Fed buying assets held by banks, pumping the economy full of liquidity to encourage investing and hiring, weakening the dollar in the process.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.09% and trading at 124.30 and EUR/JPY up 0.03% and trading at 98.67.
Later Wednesday, the U.S. will release data on pending home sales, as well as on crude oil stockpiles.
The Federal Reserve will release its Beige Book.
Meanwhile in Japan, retail sales data will hit the wire later during the day.
Investors shrugged off soft consumer confidence figures, meanwhile.
In Asian trading on Wednesday, USD/JPY was trading at 78.60, up 0.12%, up from a session low of 78.57 and off a high of 78.63.
The pair was likely to find support at 78.46, the low from Aug. 28, and resistance at 78.84, the high from Aug. 27.
Earlier in the U.S., consumer confidence plunged for August to its lowest levels in 9 months.
The Conference Board said earlier that its consumer confidence index dropped to 60.6 in August from 65.4 in July, though still well above the 45.2 index level of August 2011.
Analysts were expecting a reading of 66.0.
However, data from the U.S. housing sector, which threw the country into recession and continues to weigh on its recovery, came in better than expected.
The Standard & Poor's/Case-Shiller home price index released earlier showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The housing figures boosted spirits among investors eager to see upward revisions to the second quarter's 1.5% GDP growth figure due out later Wednesday.
More sustained growth rates would put to rest for now talk the Federal Reserve will stimulate the economy with a new round of quantitative easing, which sees the Fed buying assets held by banks, pumping the economy full of liquidity to encourage investing and hiring, weakening the dollar in the process.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.09% and trading at 124.30 and EUR/JPY up 0.03% and trading at 98.67.
Later Wednesday, the U.S. will release data on pending home sales, as well as on crude oil stockpiles.
The Federal Reserve will release its Beige Book.
Meanwhile in Japan, retail sales data will hit the wire later during the day.