Forex Pros – The euro hit a two-day high against the yen on Tuesday, amid improved risk appetite after Chinese consumer prices rose less-than-expected in January and as Australia’s central bank remained upbeat on the global economy.
EUR/JPY hit 113.15 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 112.99, gaining 0.54%.
The pair was likely to find support at 112.07, Monday’s low and resistance at 113.43, Friday’s high and a two-week high.
China’s statistics bureau said consumer prices rose 4.9% last month from a year earlier, compared with a 4.6% gain in December, disappointing expectations for a 5.4% increase.
The lower-than-expected number eased concerns over further monetary tightening by China’s central bank.
Sentiment was also helped after the minutes of the Reserve Bank of Australia’s February policy meeting said “there had been a stronger tone to the data on the global economy” since the bank’s December meeting.
The euro was also up against the Swiss franc, with EUR/CHF climbing 0.23% to hit 1.3113.
Earlier in the day, preliminary data showed that the euro zone’s economy expanded less-than-expected in the fourth quarter, while a separate report showed that the German economy expanded at the slowest pace in a year in the final quarter.
Also Tuesday, the ZEW Centre for Economic Research said German economic sentiment rose less-than-expected this month.
ForexPros.com
