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Forex - USD/JPY flat on mixed U.S. data, geopolitical concerns

Published 08/26/2014, 12:23 PM
Updated 08/26/2014, 12:26 PM
Dollar flat against yen on mixed data, Ukraine concerns

Investing.com - A mixed bag of U.S. economic indicators coupled with mounting tensions in Ukraine kept the greenback flat to slightly higher against the yen on Tuesday.

In U.S. trading, USD/JPY was up 0.06% at 104.12, up from a session low of 103.75 and off a high of 104.18.

The pair was expected to test support at 103.50, Friday's low, and resistance at 104.28, Monday's high.

The U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, surged by 22.6% last month, blowing past expectations for an increase of 7.5%.

Orders for durable goods in June were revised up to a 2.7% gain from a previously reported increase of 1.7%.

However, core durable goods orders, which are stripped of volatile transportation items, contracted 0.8% in July, confounding forecasts for a 0.5% gain. Core durable goods orders rose by 3% in June.

Separately, the Conference Board reported that its widely-watched consumer confidence index rose to 92.4 for August, the highest since October 2007, from 90.3 in July, whose figure was revised down from a previously reported 90.9.

Analysts expected the index to decline to 89.0 in August.

Tuesday's mixed data gave the greenback broad support, as it depicted a strengthening U.S. economy, though profit taking flattened the U.S. currency lower against the yen, as the dollar had advanced in recent sessions on upbeat housing data and optimistic comments from Federal Reserve Chair Janet Yellen.

Geopolitical tensions dampened demand for the dollar as well.

Russian President Vladimir Putin was set to meet his Ukrainian counterpart, Petro Poroshenko, later Tuesday amid growing tensions in the region.

On Monday, Ukraine said an armored column including 10 tanks entered from Russia as the government in Moscow unveiled plans to send a second convoy with humanitarian aid.

Elsewhere, investors tracked a lackluster report on U.S. home prices.

The S&P/Case Shiller composite index of 20 metropolitan areas rose 8.1% year over year, shy of expectations for 8.4 percent.

The yen, meanwhile, was down against the euro and up against the pound, with EUR/JPY up 0.05% at 137.34, and GBP/JPY trading down 0.01% at 172.49.

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