Breaking News
0

Forex – Dollar Drops; Japan and Australia Report Soft Data

ForexMay 31, 2018 12:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The dollar gave up earlier gains against major currencies in morning trade in Asia Thursday

Investing.com –  The dollar gave up earlier gains against major currencies in morning trade in Asia Thursday as risk appetite improved after political turbulence in Italy appeared to calm down.

A political stalemate in Italy had scared markets who feared renewed discussions about the future of the euro. But a decision by the country’s two largest non-establishment parties to renew efforts to form a coalition appeared to stave off the need for fresh elections.

The U.S. dollar index dropped from a fresh high at 94.93 and was on course to trade below the 94 level. The index that tracks the greenback against a basket of six major currencies shed 0.08% to 94.00 at 11:30PM ET (03:30 GMT). The slide is poised to continue.

In Japan, the USD/JPY pair lost 0.17% to 108.73, edging back toward a five-week low it hit on Tuesday of 108.115.

Japan released the industrial production figures, which rose 0.3% in April from a month earlier, much lower than the expected 1.4% increase. Year-on-year figures rose 2.5%, also lower than the expected 3.6% hike. The worse-than-expected data hampered risk sentiment and, ironically, supported the safe-haven yen.

In China, the People's Bank of China set the set the reference rate for the yuan against the dollar, the mid-point from which the currency is allowed to trade, at 6.4144 versus the previous day's 6.4207. The USD/CNY pair gained 0.10% to trade at 6.4255.

China released stronger-than-expected manufacturing and services Purchasing Managers’ Index (PMI) data for May. The official manufacturers PMI released by the National Bureau of Statistics (NBS) came in at 51.9 versus the estimated 51.3. The services PMI rose to 54.9 in May from 54.8 in April. However, China’s Steel Industry PMI fell to 50.6 from 51.7.

The AUD/USD pair lost 0.25% to trade at 0.7557. As Australia’s largest trading partner, China’s economic performance normally serves as a directional driver for the sentiment-linked Aussie. However, the Aussie lost ground against the greenback despite bullish China data on Thursday morning.

Meanwhile, Australia also reported worse-than-expected Capex data. Private capital expenditures rose only 0.4% in the first quarter versus 1.0% estimated and 0.2% from the fourth quarter of last year.

Forex – Dollar Drops; Japan and Australia Report Soft Data
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email