Investing.com - The yen held weaker in Asia Monday as trade data in Japan came in weaker than expected and investors looked ahead to figures from China.
USD/JPY changed hands at 102.06, up 0.27%, while AUD/USD traded at 0.7612, down 0.07% with the currency's fortunes closely-tied to trade with major partner China.
In Japan, the adjusted current account came in at ¥1.65 trillion, well below the surplus of ¥3.20 trillion for July expected. Bank lending rose 2.1%, beating the expected 2.0% gain.
Earlier in China, FX reserves came in at CNY3.2 trillion, meeting expectations.
Ahead 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, rose 0.05% to 96.24.
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.