Yen Trades Higher On US-China Jitters
November 28 2019 - 9:13PM
RTTF2
The Japanese yen traded higher against its most major
counterparts in the Asian session on Friday amid rising risk
aversion, as investors became concerned that the U.S. legislation
expressing support for Hong Kong protesters could undermine
negotiations on a trade deal.
Adding to worries, Japan and South Korea reported weak
manufacturing data, pressured by persistent uncertainty on the
U.S.-China trade deal.
China's official manufacturing and services PMI readings will be
released on Saturday while the Caixin manufacturing and services
PMI readings will be out on Dec. 2 and Dec.4, respectively.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's industrial production declined more than expected in
October signaling a notable contraction in GDP during the fourth
quarter.
Industrial output plunged 4.2 percent month-on-month in October,
in contrast to September's 1.7 percent increase. Economists had
forecast a moderate decrease of 2 percent.
The yen rose to 109.45 against the greenback, from a 2-day low
of 109.60 seen at 7:45 pm ET. The yen is likely to find resistance
around the 106.00 level.
The yen bounced off to 109.61 against the franc and 120.51
against the euro, coming off from an early low of 109.72 and an
11-day low of 120.66, respectively. If the yen rises further,
107.00 and 118.00 are likely seen as its next resistance levels
against the franc and the euro, respectively.
After falling to a 2-day low of 82.51 against the loonie at 7:45
pm ET, the yen reversed direction and gained to 82.37. Next key
resistance for the yen is seen around the 80.5 mark.
In contrast, the yen edged down to 141.50 against the pound,
from yesterday's closing value of 141.38. The yen is seen finding
support around the 146.00 region.
The yen also weakened to 74.20 against the aussie and 70.37
against the kiwi, from its previous highs of 74.05 and 70.25,
respectively. On the downside, 76.5 and 74.00 are likely seen as
the next support levels for the yen against the aussie and the
kiwi, respectively.
Looking ahead, Swiss KOF leading indicator and German jobless
rate for November, U.K. mortgage approvals for October, Eurozone
jobless rate for the same month and prelimary inflation data for
November are due out in the European session.
At 8:30 am ET, Canada GDP for September and industrial product
price index for October will be featured.
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