Investing.com - The dollar edged up against the yen in Asia on Friday with Japan consumer prices on tap ahead and as Republican U.S. Senator John McCain said he would back the tax bill.
USD/JPY changed hands at 112.60, up 0.06%. AUD/USD traded at 0.7562, down 0.07%.
Japan reports household spending for October with a 1.4% decline expected on month and a 0.4% dip on year. Also up is national core CPI with a 0.8% gain seen on year and national CPI posting a 0.2% rise, as well as a steady unemployment rate pf 2.8%.
Later Japan reports the manufacturing PMI for November with a 53.8 level expected, steady with October.
China reports the Caixin manufacturing PMI for November with a 50.9 level, down a tick from 51.0 in October.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.27% to 92.97.
Overnight, the dollar pared some of its losses against a basket of major currencies on Thursday amid signs that the recent slowdown in inflation could be transitory, strengthening the Federal Reserve's case to adopt a more aggressive monetary policy tightening path.
The dollar recovered some of its early session losses following a raft of data showing an improvement in manufacturing and the labor market, while the trend of slowing inflation subsided.
The Core Price Consumer Expenditure (PCE) Index – the Fed’s preferred measure of inflation – rose 1.4% in October year-on-year, compared to a 1.3% rise in the previous month, while September inflation was revised upward to 1.4% from 1.3%.
On the jobs data front, number of individuals who filed for unemployment insurance for the week ended Nov. 25, fell by 2,000 to 238,000.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.3% in line with economists’ expectations.
The upbeat inflation report supported the Fed’s view that the slowdown in inflation was transitory, lifting expectations for more aggressive monetary policy tightening in 2018.
Sterling, meanwhile, continued to limit gains in the dollar amid Brexit-related positive commentary.