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Forex - USD/JPY climbs in mid-day Asian trade

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In early Asian trade USD/JPY hit 76.62, the pair's lowest since Monday; the pair subsequently consolidated at 76.78, adding 0.16%.

The pair was likely to find support at 75.97, last Friday's low and the pair's all time low and resistance at 77.19, Monday's high.

On Tuesday, the U.S. Census Bureau reported that new home sales fell more than expected in July, dropping 0.7% to a seasonally adjusted annual rate of 298,000. Economist had forecast a 1% gain to 310,000 for the month.

It was the third straight month the figure declined and slowest growth rate since February.

In a separate report, the Richmond Federal Reserve Bank said its manufacturing index slumped to minus 10 in August from minus 1 in July, the lowest monthly rating since June of 2009. Forecasts were for the figure to fall to minus 7 for the month.

The weak economic numbers served to heighten expectations for the Federal Reserve's meeting in Jackson Hole, Wyoming this week, and hopes for a new round of quantitative easing from the U.S. central bank.

Wall Street shares posted gains for the second day in a row, with the Dow Jones Industrial Average closing up 3%, the Nasdaq Composite Index rose 4.3%, and the S&P 500 gained 3.4%.

Moody's Investor Service, earlier Wednesday, reduced Japan's credit rating to AA3 from AA2 saying decision was "prompted by large budget deficits and the build-up in Japanese government debt since the 2009 global recession."

According to the Organization for Economic Cooperation and Development, Japan's public debt is expected to total 219% of gross domestic product by next year.

Meanwhile, the yen moved lower against both the euro and the British pound with EUR/JPY up 0.03% to hit 110.65, and GBP/JPY rising 0.12% to hit 126.58.

Monthly core durable goods orders figures from the U.S. Census Bureau were scheduled for release before the start of trading Wednesday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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