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Forex - USD/JPY mixed after falling CSPI index in Japan

Published 02/24/2014, 07:23 PM
Updated 02/24/2014, 07:28 PM

Investing.com - The dollar moved between small gains and losses against the yen during Asian trading hours on Tuesday after a report showed that Japan's corporate services price index fell unexpecdedly in January.

The Bank of Japan reported that the country’s corporate services price index that measures the change in the price of goods sold by corporations fell to 0.8% in January. Markets had forecast it to be at 1.2% after it stood at 1.1% in December.

At 1245 Tokyo time (0345 GMT) Japan's Ministry of Finance will releases the results of its 40-year JGB auction results. It is due to auction Y400 billion of 40-year bonds on Tuesday.

In New Zealand, at 1500 Wellington (0200 GMT), inflation expectations are due for first quarter. The Reserve bank of New Zealand’s previous survey showed that the 2-year inflation expectations was at 2.34%.

USD/JPY fell 0.03% at 102.46, AUD/USD went up 0.02% at 0.9036, while NZD/USD fell 0.01% at 0.8330.

On Monday, the dollar gave back earlier safe-haven gains stemming from soft Chinese housing data and dipped against most major currencies as rising U.S. stocks and talk of international aid for the Ukraine enticed investors out of safe-harbor greenback positions.

Data released earlier revealed that home prices in major Chinese cities rose 9.6% in January, short of December's 9.9% growth.

Growth fell for the first time in 14 months in January, which fueled already growing fears that the world’s second largest economy is slowing as the government tries to deal with bad loans and weak lenders, which sparked safe-haven demand for the greenback earlier.

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The greenback fell in later trading after a U.S. stock-market rally enticed investors out of the greenback, while talk the Ukraine may receive international aid and avoid default also sent the U.S. currency falling as investors took up risk-on trading positions.

Meanwhile in Europe, German research institute Ifo said its business climate index came in at 111.3 in February, the highest level since mid-2011, up from 110.6 in January. Analysts had expected an unchanged reading.

German firms are benefitting from high export demand the report said, though ongoing emerging-market volatility concerns clouded the outlook.

The future expectations component of the index ticked down to 108.3 from 108.9 in January, though it did beat expectations for a decline to 108.2.

A separate report showed that the annual rate of euro zone inflation came in at 0.8% in January, unchanged from the previous month and slightly higher than the preliminary estimate for 0.7%. Consumer prices were down 1.1% from a month earlier, in line with forecasts.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.24.

On Tuesday, the U.S. is to release data on consumer confidence and a private sector report on house price inflation.

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