Forexpros – The U.S. dollar was almost unchanged against the yen on Tuesday, as hopes for a quick solution to the debt crisis in the euro zone ebbed, while data showing that growth in China moderated also supported safe haven demand.
USD/JPY hit 76.73 during late Asian trade, the daily low; the pair subsequently consolidated at 76.82, dipping 0.01%.
The pair was likely to find support at 76.30, the low of October 12 and a two-week low and short-term resistance at 76.97, the high of October 4.
Hopes for a comprehensive solution to the euro zone’s financial woes were quashed on Monday after Germany’s Finance Minister Wolfgang Schaeuble said the October 23 European Union summit would not provide a “definitive solution” to the region’s debt crisis.
Meanwhile, ratings agency Moody’s put France on three months notice that “pressure from weaker debt metrics,” could leave the country with a negative credit outlook and may even result in a downgrade.
Elsewhere, official data showed that China’s economy grew at the slowest rate since 2009 in the third quarter, expanding at a rate of 9.1%, after expanding by 9.5% in the preceding quarter and below expectations for a 9.3% increase.
The yen was also higher against the euro, with EUR/JPY shedding 0.44% to hit 105.08.
Later Tuesday, the U.S. was to release a government report on producer price inflation. Federal Reserve Chairman Ben Bernanke was also due to speak in Boston later in the day.
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