Investing.com – USD/JPY rose during Asian trading hours after the announcement on implementation of Japan’s stimulus program.
Japan’s ministry of finance said that 70% of country’s JPY 5 trillion stimulus will be implemented by the end of June and 90% by end of September.
At 1245 local time (0345 GMT) Japan’s MOF is due to auction Y2.7 trillion of 5-year bonds.
In China CPI and PPI for January will be released at 0930 local time (0130 GMT). The consumer price index is forecast at +2.3% YoY after +2.5% in December, while PPI is expected to be at -1.6% YoY in January against -1.4% YoY in Dec.
In Australia, RBA Assistant Governor Christopher Kent told the Committee for Economic Development of Australia in Sydney that the decline in the Australian dollar over the past year may lead to balanced growth. "The Bank has noted for some time that lower levels of the exchange rate, if sustained, will assist in achieving balanced growth in the economy and bring about a quicker return to trend growth,” he said while adding that, “it will also add a little to inflation, for a time.”
USD/JPY rose 0.14% at 102.30, AUD/USD rose 0.18% at 0.8996 while NZD/USD rose 0.07% at 0.8347.
On Thursday the U.S. dollar traded lower against most major currencies after disappointing U.S. retail sales data reminded investors that the Federal Reserve will take its time dismantling dollar-weakening stimulus programs, while rate hikes remain far beyond the horizon.
The Commerce Department reported earlier that U.S. retail sales fell 0.4% in January, confounding expectations for a 0.3% increase. December’s figure was revised down to a decline of 0.1% from a previously reported 0.2% increase.
Core retail sales came in flat in January compared to expectations for a 0.1% rise.
The soft data fueled worries that U.S. economic recovery still faces headwinds and that the Federal Reserve will take its time dismantling its USD65 billion bond-buying program, while rate hikes remain far off on the horizon.
Fed asset purchases weaken the dollar by suppressing interest rates, which tends to bolster assets like stocks and commodities.
Elsewhere, the Department of Labor reported that the number of individuals who filed for unemployment assistance in the U.S. last week rose by 8,000 to 339,000 from the previous week’s total of 331,000.
Analysts had expected jobless claims to fall by 1,000.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 80.35.
On Friday, the U.S. is to wrap up the week with the closely watched preliminary reading of the University of Michigan consumer sentiment index. The U.S. is also to release data on import prices and industrial production.