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Forex - USD/JPY higher after China PMI data

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Investing.com - The dollar was higher against the yen on Wednesday after data showing that Chinese manufacturing activity slumped to an 11-month low in July bolstered dollar demand.

USD/JPY hit 99.94 during late Asian trade, the session high; the pair subsequently consolidated at 99.80, gaining 0.37%.

The pair was likely to find support at 99.13, Tuesday's low and resistance at 100.61, Monday's high.

The preliminary reading of China's HSBC manufacturing purchasing managers' index fell to 47.7 in July, from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6.

The dollar regained ground against the yen, after falling to almost one-week lows on Tuesday as recent weaker U.S. data dampened expectations that the Federal Reserve will scale back its easing program later this year.

Last week Fed Chairman Ben Bernanke said the bank could start tapering bond buying by the end of the year if the economy continues to improve, but added that there was no "preset course."

Elsewhere, data released on Wednesday showed that Japan posted a trade deficit of JPY180.8 billion in July as the weaker yen pushed import costs higher. Imports were up 11.8% from a year earlier, while exports climbed 7.8% on a year-over-year basis.

The yen was lower against the euro, with EUR/JPY advancing 0.30% to 131.90.

The euro zone was to release data on manufacturing and service sector activity later in the day, while the U.S. was to produce official data on new home sales.

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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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