Investing.com - The yen traded weaker in Asia on Friday after price data that came in largely as expected and after remarks from Fed Chair Janet Yellen noting again that interest rates in the U.S. will likely rise this year.
USD/JPY traded at 120.24, up 0.15%, while AUD/USD changed hands at 0.7017, down 0.13%.
National cored CPI in Japan for August fell 0.1% year-on-year, matching expectations, while the corporate services price index rose 0.7%, better than the 0.5% gain seen.
Yellen said she anticipates that it will be appropriate to raise short-term interest rates by the end of the year.
In prepared remarks for a speech at the University of Massachussetts-Amherst, Yellen emphasized that most of her colleagues will likely support raising the target range for the Federal Funds Rate at some point this year. Yellen's stance represents a stark contrast from her position last week when the FOMC only disclosed that 13 of 17 of its members were in favor of raising rates this year. Yellen had not personally associated herself with a rate hike since July.
Following the FOMC's July meeting, China rattled global markets by devaluing the yuan in an effort to stimulate its flagging economy. Earlier this week, a preliminary reading of China's factory activity in September slumped to its lowest level in more than six years.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was flat at 96.11.
Overnight, the dollar remained broadly lower against the other major currencies on Thursday, after the release of mixed U.S. economic reports and as sentiment on the greenback remained fragile.
The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending September 19 increased by 3,000 to 267,000 from the previous week’s total of 264,000, compared to expectations for a 7,000 rise.
Separately, the U.S. Commerce Department said that total durable goods orders decreased by 2.0% last month, matching forecasts. Orders for durable goods in July were revised to a gain of 1.9% from a previously reported increase of 2.2%.
Core durable goods orders, which exclude volatile transportation items, were flat in September, compared to expectations for an increase of 0.1%. Core durable goods orders rose 0.4% in July.
Data also showed that U.S. new home sales increased by 5.9% to 552.000 units in August from revised total of 522.000 units the previous month. Analysts had expected new home sales to rise by 1.6% in August.