Forex - Yen weaker ahead of major data releases in Japan

Investing.com - The Japanese yen held slightly weaker in early Asia on Friday ahead of major data day in the country and after the decision by OPEC to leave production rates largely steady that sent oil prices south.

USD/JPY traded at 117.79, up 0.04%, while AUD/USD changed hands at 0.8534, down 0.10%. EUR/USD traded at 1.2466, flat.

The slew of month-end data in Asia for the final trading day of November included October building approvals in New Zealand that rose 8.8% month-on-month, reversing a 12.2% fall in the previous month.

NZD/USD fell 0.21% to 0.7853 after the data.

In Australia, the RBA's private sector credit and investor housing credit data are due at 1130 Sydney (0030 GMT). Private sector credit is expected to show a 0.5% month-on-month rise in October.

The Japanese data flood starts at 0830 Tokyo time (02330 GMT) with the release of the October CPI, unemployment and household spending.

October national core CPI is forecast at a gain of 2.9% on year from an increase of 3.0% in September, a 17th straight year-on-year rise but the slowest since April sales tax hike.

The unemployment rate is seen at 3.6%, unchanged from September. Household spending is forecast at a drop of 4.8% year-on-year in real terms, a seventh consecutive year-on-year drop.

Then, at 0850 (2350 GMT), there's October retail sales and industrial output data.

Retail sales are forecast at up 1.5% on year, a fourth straight year-on-year rise, but slower than 2.3% gain in September.

Later in the day, October housing starts are due at 1400 (0500 GMT). Housing starts are forecast at a decline of 14.5% on year, an eighth straight fall.

Late Thursday, members of the oil producing group met in Vienna on Thursday and agreed to maintain their existing production limit of 30 million barrels a day, although some OPEC members often exceed their production quotas.

The 12 member countries on Thursday said they would comply with the limit, which might lead to a decline in production of about 300,000 barrels a day, according to OPEC's own data.

In response, light, sweet oil for January delivery fell $4.64, or 6.3%, to $69.05 a barrel as electronic trading on the New York Mercantile Exchange halted for the day. This was the lowest level since May 2010. The Nymex floor was closed Thursday in observance of Thanksgiving and will reopen on Friday, while electronic trading was halted at 1 p.m. EST and will resume at 6 p.m. EST. Brent, the global benchmark, fell $4.93, or 6.3%, to $72.82 a barrel on the ICE Futures Europe exchange.

Overnight, the dollar remained broadly higher against a basket of other major currencies on Thursday, as trade volumes were expected to remain light with U.S. markets closed for the Thanksgiving holiday.

The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, added 0.36% to 88.01.

The dollar weakened broadly on Wednesday after data showed that U.S. initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected.

Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.

Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.