United States Dollar vs Japanese (FX:USDJPY)
2 Years : From Mar 2012 to Mar 2014
The Japanese yen spiked up against other major currencies in the late Asian session on Tuesday as investors sought low yielding currency amid worries about the global economy following recent weak data from the U.S. and Europe.
The figures released by the Commerce Department on Monday showed that the growth in U.S. consumer spending slowed somewhat in March even though personal incomes grew slightly more than expected.
Meanwhile, the Spanish economy returned to recession in the first quarter of 2012 as estimated by the Bank of Spain, but the rate of contraction in activity was slightly weaker than thought.
The statistical office Ine said yesterday that the gross domestic product contracted 0.3 percent quarter-on-quarter in the first quarter, compared to 0.4 percent decline estimated by the central bank last week.
The yen touched a fresh 2-1/2-month high of 64.95 against the NZ dollar, more than 2-month high of 79.68 against the US dollar and near a 3-month high of 82.27 against the Australian dollar with 64.00, 78.3 and 81.5 seen as the next upside target levels, respectively.
The Reserve Bank of Australia, or RBA, today decided to cut the main interest rate by 50 basis points to 3.75 % in a bid to support economic growth.
The rate cut was larger than expected by economists who were looking for a reduction of 25 basis points.
A separate report showed early in the day that Australia's manufacturing activity contracted sharply in April.
The Australian Industry Group reported today that its Performance of Manufacturing Index declined 5.6 points to 43.9.
The Japanese currency hit fresh 2-week highs of 80.59 against the Canadian dollar and 129.33 against the pound, compared to Monday's close of 80.00 and 128.5, respectively.
Against the euro and the franc, the yen rose to as high as 105.58 and 87.91 with 105.00 and 87.00, respectively seen as the next upside target levels.
In the European session, U.K. manufacturing PMI for April is due.
From the U.S., ISM manufacturing data for April and construction spending for March are set for release in the New York morning session.