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Forex - Yen down in early Asia ahead of trade data

Published 08/07/2016, 07:19 PM
Updated 08/07/2016, 07:22 PM
© Reuters.  Yen weaker in early Asia
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Investing.com - The yen was weaker in Asia on early Monday ahead of trade data, with figures from China also slated.

USD/JPY changed hands at 102.14, up 0.34%, while AUD/USD traded at 0.7611, down 0.08% with the currency's fortunes closely-tied to trade with major partner China.

In Japan, the adjusted current account us expected to show a surplus of ¥3.20 trillion for July and bank lending is seen up 2.0% year-on-year.

In China, the trade balance for July is expected at a surplus of $47.6 billion, with exports down 3.0% and imports down 7.0%, both year-on-year.

Outside the G7, traders will be awaiting a monetary policy announcement from the Reserve Bank of New Zealand on Wednesday amid growing expectations for a cut in interest rates.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 96.16.

Last week, the U.S. dollar rallied after data showed U.S. employment increased more than expected in July, raising the probability of an interest rate hike from the Federal Reserve this year.

The U.S. economy added 255,000 jobs last month, well above expectations for 180,000, the Labor Department said on Friday. June’s number was revised up to 292,000 jobs compared with the previous estimate of 287,000.

Meanwhile, the unemployment rate held steady at 4.9%, as more people entered the labor market.

The report also showed that average hourly earnings rose month-on-month by 0.3%, beating expectations for a 0.2% gain. They were up 2.6% on the year.

The upbeat data reignited speculation that the Federal Reserve will lift interest rates this year. Fed funds futures are currently pricing in a 15% chance of a rate hike by September. December odds were at around 44%, up from 33% ahead of the report.

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