Japanese Yen Higher Amid Rising Risk Aversion
April 02 2020 - 11:36PM
RTTF2
The Japanese yen climbed against its major counterparts in the
Asian session on Friday amid rising risk aversion, as oil prices
retraced gains and a private survey showed that China's services
sector contracted further in March.
Survey data from IHS Markit showed that China's services
activity contracted in March due to the impact of the COVID-19
outbreak on demand and supply chains.
The Caixin services Purchasing Managers' Index rose to 43.0 in
March from 26.5 in February. However, a score below 50 indicates
contraction.
Oil prices fell after soaring on Thursday following President
Donald Trump's comment that he expects Russia and Saudi Arabia to
co-operate on output reduction.
The United States reported a record 6.648 million jobless claims
last week led by shut downs to contain the virus.
Investors await the March payroll data due at 8:30 am ET.
Economists are expecting a drop of 100,000 jobs last month, while
the unemployment rate is seen rising to 3.8 percent.
The number of confirmed coronavirus cases crossed the 1 million
mark globally with a death toll of 53,030, according to the new
tally from Johns Hopkins University.
Around 1,015,403 people have been diagnosed with the novel
coronavirus across the world.
The latest survey from Jibun Bank showed that the services
sector in Japan continued to contract in March, and at a much
steeper rate, with a services PMI score of 33.8.
That's down sharply from 46.8 in February, and it moves further
beneath the boom-or-bust line of 50 that separates expansion from
contraction.
The yen rebounded to 107.80 against the greenback, from a 3-day
low of 108.20 hit at 7:15 pm ET. The currency is likely to locate
resistance around the 105.00 level.
The yen rose to 116.84 against the euro and 133.45 against the
pound, from an early low of 117.39 and a 3-day low of 134.09,
respectively. If the yen rises again, it may test resistance around
112.00 against the euro and 128.00 against the pound
Reversing from an early low of 111.02 against the franc, the yen
ticked up to 110.66. Next immediate resistance for the yen is seen
around the 109.00 level.
The yen gained to 63.64 against the kiwi, 65.29 against the
aussie and 76.08 against the loonie, off its early lows of 64.02
and 65.61 and a 3-day low of 76.63, respectively. The yen is seen
finding resistance around 60.00 against the kiwi, 60.00 against the
aussie and 72.00 against the loonie.
Looking ahead, PMI reports from major European economies and
Eurozone retail sales for February are due in the European
session.
The U.S. jobs data and ISM services PMI for March are scheduled
for release in the New York session.
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