Investing.com - The dollar firmed against the yen on Tuesday after upbeat factory data in the U.S. and China enticed investors to the greenback on expectations that despite bumps along the way, the world''s first and second-largest economies continue to recover.
In U.S. trading, USD/JPY was up 0.17% and trading at 101.51, up from a session low of 101.24 and off a high of 101.60.
The pair was expected to test support at 101.24, Monday''s low, and resistance at 102.17, the high from June 24.
The Institute for Supply Management reported earlier that its purchasing managers'' index fell to 55.3 in June from 55.4 in May. Analysts had expected the manufacturing PMI to increase to 55.8 in June, though the dollar posted gains, as any reading over 50 marks expansion.
Meanwhile in China, the country''s official purchasing managers'' index came in a 51.0 in June, in line with expectations and up from 50.8 in May, which also painted a picture of an improving global economy.
Elsewhere the final reading of the Markit Economic U.S. manufacturing PMI rose to 57.3 in June, the highest reading since May 2010. The report showed the fastest growth in output and new orders since April 2010.
Separately, the Commerce Department said construction spending rose 0.1% in May, below the expected 0.5% increase.
Meanwhile across the Pacific Ocean, Japan''s quarterly Tankan survey of big business sentiment came in at +12 in June, missing market calls for a +15 reading.
The yen, meanwhile, was down against the euro and down against the pound, with EUR/JPY up 0.11% at 138.90, and GBP/JPY trading up 0.45% at 174.12.
On Wednesday, the U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on factory orders.
Later Wednesday, Fed Chair Janet Yellen is to speak at an event in Washington; her comments will be closely watched.
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