Investing.com - The yen gained further in Asia on Monday on stronger GDP in the first quarter than earlier reported, while the Aussie weakened on mixed China trade data.
China said May exports fell 2.5%, less than the 5% drop seen, while imports dropped 17.6%, much more than the slide of 10.7% expected.
China customs gave the trade surplus as RMB366.8 billion, with a dollar figure set at $59.49 billion, well above the $44.95 billion forecast.
USD/JPY changed hands at 125.35, down 0.19%, while AUD/USD traded at 0.7621, down 0.01%. EUR/USD traded at 1.1099, down 0.14%.
Earlier, the yen strengthened on Monday after data suggested the economy grew faster than earlier estimated in the first quarter with investors next ready for China trade data and the latest remarks on debt talks with Greece.
Japan revised first quarter GDP up to a pace of 1% quarter-on-quarter from a preliminary 0.6% gain and an expected upward revision to 0.7%. The revised GDP data showed the economic recovery has gained traction, reaching a 3.9% annual growth rate, and overcoming the drag from last year's sales tax hike and economists expect GDP to mark the third straight growth quarter in April-June, but at a slower pace.
At the weekend, European Parliament President Martin Schulz urged Greece in a newspaper interview to accept a proposal by its international lenders for a cash-for-reforms deal, warning Athens that failing to reach an agreement would have "dramatic" consequences.
The European Union is willing to compromise with the Greek government, Schulz told German newspaper Welt am Sonntag in an interview published on Sunday, adding that the lenders had already made concessions in the debt negotiations.
"I can only warn the Greek government against turning down the hand held out to them," Schulz, who has been supportive of Greece's cause, said. "Time is running out and the consequences would be dramatic."
The U.S. Dollar Index, which measures the greenback against a weighted-basket of currencies, rose 0.09% to 96.47.
Last week, the dollar rose to its highest level in 13 years against the yen on Friday and gained ground against the euro after a stronger-than-expected U.S. employment report boosted the outlook for higher interest rates.
The Labor Department reported that the U.S. economy added 280,000 jobs in May, ahead of economists forecast for 220,000. The unemployment rate ticked up to 5.5% from 5.4% in the previous month.
April’s payrolls report was revised to show that 221,000 jobs were created.
Hourly earnings increased 0.3% in May, after a 0.2% increase in April.
The upbeat data, particularly the pick-up in wage growth underlined the view that the economy is on track to rebound after a weak first quarter and bolstered expectations that the Federal Reserve could start to hike interest rates at its September policy meeting.
The dollar rallied against the other major currencies following the release of the data.
In the week ahead, investors will be focused on the euro zone, while reports on euro zone industrial production will also be closely watched.
In the U.S., Thursday's retail sales report and Fridays report on consumer sentiment will be scrutinized for signs that the world’s largest economy is gaining momentum in the current quarter.
On Monday, in the euro zone, Germany is to release data on industrial production. Canada is to publish reports on building permits.