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Forex - Yen up after Q1 GDP meets expectations

Published 06/07/2016, 08:02 PM
Updated 06/07/2016, 08:05 PM
© Reuters.  Yen gains after current account, GDP
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Investing.com - The yen gained on Wednesday after mixed current account and GDP data that showed the economy met an expected growth pace, while the current account surplus came in narrower than expected.

USD/JPY changed hands at 107.19, down 0.15%, while AUD/USD traded at 0.7446 down 0.16%.

In Japan, the adjusted current account showed a surplus of ¥1.63 trillion, narrower than the surplus of ¥2.04 trillion seen.

GDP for the first quarter in Japan met the 1.9% gain seen year-on-year as well as the 0.5% pace quarter-on-quarter.

Later, Australia reports home loans for April with a 2.5% increase expected month-on-month and housing finance is also due with a 1.5% gain posted in April.

In China, a trade balance of $50.0 billion is expected for May on imports that were seen down 6.0% and exports showing a fall of 3.6% year-on-year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.20% at 93.84.

Overnight, the dollar remained close to one-month lows against the other major currencies on Tuesday, after Federal Reserve Chair Janet Yellen on Monday sparked fresh uncertainty over the timing of future U.S. rate hikes.

Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

The remarks came after data on Friday showing that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010.

The disappointing data ruled out chances for a June rate hike and prompted investors to push back expectations on the timing of the next rate hike until later this year.

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