Investing.com - The Japanese yen jumped against the dollar on
Thursday in Asia after stronger than expected first quarter GDP
data that was boosted by a spending spree ahead of a sales tax hike
to 8% from 5% that took effect April 1.
Japan preliminary real GDP for the first quarter rose 1.5%,
compared to a 1.0% gain expected. USD/JPY traded at 101.75, down
0.14%, after the data.
The stronger data however may be a blip as households are
expected to pare back spending this quarter.
Later in the session at 1400 Tokyo (0500 GMT) the Consumer
Confidence Index for April is expected.
New Zealand details its budget for the fiscal year starting June
1 at 1400 local (0200 GMT).
Tthe Reserve Bank of Australia's Luci Ellis, head of the
Financial Stability Department, son Thursday said a repeat of the
2002-2003 housing price boom was unlikely.
AUD/USD traded at 0.9368, down 0.11%.
Overnight the dollar traded largely lower against most major
currencies in subdued trading as bargain hunters sent the euro
rising on sentiments a European Central Bank decision to trim
interest rates in June has been priced into trading.
Reuters reported earlier that the ECB is preparing a "package of
measures" including cuts to all interest rates, with negative rates
on bank deposits to encourage lending to small and medium-sized
businesses to spur recovery.
A day earlier, the Wall Street Journal reported the German
central bank Bundesbank would back ECB monetary easing measures,
including a negative rate on bank deposits and purchases of
packaged bank loans, if such tools were needed to keep persistently
low levels of inflation from becoming entrenched in the euro
Last week, ECB President Mario Draghi said monetary authorities
were "comfortable" with acting at its next meeting in June.
Meanwhile in the U.S., producer price inflation rose more than
expected in April, while core wholesale prices also topped
forecasts, official data showed on Wednesday.
The Commerce Department reported earlier that producer prices
increased by 0.6% last month, beating forecasts for a 0.2% gain,
after rising 0.5% in March.
The Federal Reserve views core prices as a better gauge of
longer-term inflationary pressure because they exclude the volatile
food and energy categories.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, fell 0.05%
On Thursday, the U.S. is to release data on initial jobless
claims, consumer inflation and industrial production, as well as a
report on manufacturing activity in the Philadelphia region.
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