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Forex - Yen flat as household spending jumps, jobs outlook weaker

Published 10/01/2015, 09:08 PM
Updated 10/01/2015, 09:11 PM
© Reuters.  Yen flat after jobs, household spending data
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Investing.com - The yen traded flat on Friday in Asia after upbeat household spending data offset a weaker than expected jobs report.

USD/JPY changed hands at 119.93, flat, while AUD/USD traded at 0.7039, up 0.14%.

China's markets are closed for the National Day holidays and will re-open on Oct. 8.

In Japan, the August unemployment rate ticked up to 3.4%, from an expected steady 3.3%, while household spending jumped 2.9%, compared to a gain of 0.4% on year in real terms, the first rise in three months.

As well, the BoJ's September corporate inflation outlook said firms see a rise of 1.2% in CPI in one year,and a 1.4% gain in three years.

In Australia the August retail sales report due at 1130 Sydney time (0130 GMT). Retail sales for August are expected to show a 0.4% month-on-month rise.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.06% to 96.29.

Overnight, the dollar slipped lower against against the other major currencies on Thursday, after data showed that manufacturing activity in the U.S. slowed again in September and that jobless claims rose more than expected last week.

The Institute for Supply Management said its index of purchasing managers fell to 50.2 last month from a reading of 51.1 in August. Analysts had expected a more modest decline to 50.6.

Earlier Thursday, the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending September 26 increased by 10,000 to 277,000 from the previous week’s total of 267,000, compared to expectations for a 3,000 rise.

Investors were turning their attention to Friday’s U.S. jobs report for September, which could help to provide clarity on the likelihood of a near-term interest rate hike by the Federal Reserve.

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