Forex Pros – The U.S. dollar edged higher against the yen on Thursday, easing up to a four-day high, after a flurry of economic data indicated that growth in Asian economies could be slowing.
USD/JPY hit 82.96 during early European morning trade, the pair’s highest since March 4; the pair subsequently consolidated at 82.81, easing up 0.09%.
The pair was likely to find support at 82.20, Tuesday’s low and resistance at 83.52, the high of February 22.
Earlier Thursday, official data showed that Japan’s economy contracted more than the government initially estimated in the fourth quarter because of a downward revision to capital investment and consumer spending.
Gross domestic product shrank at an annualized 1.3% rate in the last quarter, more than the 1.1% contraction reported last month, the Cabinet Office said.
Elsewhere, a government report showed that China unexpectedly posted a trade deficit of USD7.3 billion in February; it’s largest in seven years, as the Lunar New Year holiday disrupted export activity.
China’s imports rose at an annualized rate of 19.4% in February, below the 32.8% consensus, while exports rose 2.4%, far below the expected 25.9%.
Meanwhile, the yen was higher against the euro, with EUR/JPY shedding 0.55% to hit 114.43.
Also Thursday, official data showed that Australia’s economy lost jobs in February for the first time in 18 months, while New Zealand’s central bank cut interest rates to offset the impact from the 6.3 magnitude earthquake that hit Christchurch last month.
ForexPros.com
