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Forex - Yen down further in Asia on Kuroda views, regional data sets

Published 11/13/2016, 09:05 PM
Updated 11/13/2016, 09:07 PM
© Reuters.  Yen weakens further in Asia
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Investing.com - The yen weakened further on Monday in Asia as central bank chief comments, third quarter economic growth figures from Japan and Chinese data on retail sales, industrial output and asset investment were weighed regionally.

USD/JPY changged hands at 107.41, up 0.68%, while AUD/USD traded at 0.7541, down 0.04%.

China said fixed asset investment for October rose 8.3%, beating the 8.2% rise seen year-on-year and industrial production gained 6.1%, below the expected 6.2% rise seen and retail sales increased 10.0%, below the 10.7% increase seen.

Later, Japan reports industrial production for September which is seen flat month-on-month.

Earlier, Japan reported third quarter GDP jumped 0.5% quarter-on-quarter and at a 2.2% pace year-on-year, handily beating expected gains of 0.2% and 0.9% respectively. Economists expect Japan's economy to post continued modest growth in the final quarter of 2016, backed by a pickup in consumer sentiment and increased public works projects in the government's stimulus package.

Separately, Bank of Japan Governor Haruhiko Kuroda on Monday urged companies to hike wages in line with the central bank's 2% sustained inflation target and said fiscal and monetary measures will remain keys to boosting the economy.

"Looking ahead on the overall economy, employment and income conditions are expected to continue improving. Business investment has been slow to emerge but if the corporate sector picks up, it will lead to an improvement in final demand," a Japan government official told the media.

The average economist forecast for Q4 GDP growth was an annualized 0.80%, according to the latest monthly ESP Survey of 42 economists by the Japan Center for Economic Research conducted from Oct. 26 to Nov. 2.

Elsewhere, the kiwi fell in Asia on Monday after a strong earthquake and related aftershocks hit New Zealand near the city of Christchurch early Monday morning. NZD/USD traded at 0.7086, down 0.39%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 98.51, up 0.53%.

Ahead, European Central Bank President Mario Draghi is to speak at an event in Rome. Last week, the dollar hit its highest levels in nine months against a basket of the other major currencies on Friday, boosted by expectations that the administration of U.S. President-elect Donald Trump will spur growth and inflation.

Expectations for higher U.S. interest rates also remained intact amid optimism that a pick-up in growth will allow the Federal Reserve to tighten borrowing costs.

Investors currently price an 81.1% chance of a rate hike at the Fed's December meeting; according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.
Expectations for higher rates typically boost the dollar by making it more attractive to yield seeking investors.

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