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Forex - Yen weaker in early Asia with services PMIs in Australia, China

Published 01/05/2016, 07:14 PM
Updated 01/05/2016, 07:17 PM
Japanese yen weaker in early Asia
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Investing.com - The yen was a tad weaker in Asia on Wednesday in a light data day with services PMIs in Australia and China on the cards.

USD/JPY changed hands at 119.10, up 0.08%, while AUD/USD traded at 0.7164, up 0.01%.

In Australia, the AIG services index for December came in at 46.3, down from 48.2. A reading below 50 signal contraction. Ahead, the Caixin Services PMI for December is due with a reading of 52.3 expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was flat at 99.47.

Overnight, the dollar pushed broadly higher against the other major currencies on Tuesday, as dowbeat euro zone inflation data, concerns over Chinese growth and mounting tensions in the Middle East continued to weigh on market sentiment.

Demand for the safe-haven yen persisted after data on Monday showed that China’s Caixin manufacturing purchasing managers’ index fell to 48.2 this month from 48.6 in December.

It was the lowest reading since September and was well below the 50-point level which separates expansion from contraction. Markets were also jittery amid concerns over growing tensions in the Middle East after Saudi Arabia executed a prominent Shi'ite cleric, prompting a retaliatory attack on the Saudi embassy in Iran.

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