Investing.com - The yen slipped further in Asia on Monday despite stronger than expected economic growth in the third quarter as investors looked ahead to data from China.
USD/JPY changed hands at 106.88, up 0.19%, while AUD/USD traded at 0.7550, up 0.08% ahead of key data out of main trading partner China
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. Later on Monday, 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.
"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.
Later, Japan reports industrial production for September which is seen flat month-on-month. Also from China comes fixed asset investment for October with an 8.2% rise seen year-on-year and industrial production expected up 6.2% and retail sales seen rising 10.7%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 98.99.
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.