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Forex - Yen up in early Asia with China markets open after long holiday

Published 10/07/2014, 06:26 PM
Updated 10/07/2014, 06:29 PM
Yen slightly stronger in early Asia
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Investing.com - The Japanese yen gained slightly and the Australian dollar fell in early Asia on Wednesday with China markets back on the scene after a week-long holiday.

USD/JPY traded at 108.11, down 0.02%, while AUD/USD changed hands at 0.8805, down 0.10%.

China's markets re-open today with the release of the HSBC China services PMI for September due at 0945 local time (0145 GMT).

Elsewhere, Japan publishes trade data for the first 20 days of the September and August current account balance at 0850 Tokyo (2350 GMT).

At 1400 (0500 GMT), Japan's September Economy Watchers' Survey and the BoJ's October economic report are due.

Overnight, the dollar was steady against a basket of other major currencies after the International Monetary Fund cut its forecast for global growth for 2014 and 2015 and warned that the global recovery is weak and uneven.

The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.03% to 85.74.

The IMF is now forecasting global economic growth of 3.3% this year, down from 3.4% in July and expects growth of 3.8% in 2015, compared to an earlier prediction of 4.0%.

The fund said Europe was experiencing a "multispeed recovery" and revised down its growth forecasts for Germany, France and Italy saying progress was still "slow and tentative" in many countries.

Japan received the largest downgrade of any country, with growth for this year now expected to be 0.9%, in part due to the effects of a sales tax increase in April.

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