Japanese yen shows a weak trend on Friday trading, getting influenced by published statistics which proved to be largely in line with expectations, and statements by Fed chief, Janet Yellen, who once again noted that the rate hike will happen with high probability this year.
USD/JPY pair was traded at 120.24, showing a growth of 0.15%, while AUD/USD varies around 0.7017 at the moment, decreasing by 0.13%.
Japanese nationwide core consumer price index in August fell by 0.1% y/y, reflecting the expectations of analysts. At the same time, corporate consumer price index in the service sector exceeded expectations, showing an increase of 0.7% instead of 0.5%.
Yellen said that, in her view, rate hike before the end of the year would be the most successful. In her speech at the University of Massachusetts, Yellen pointed out that most of her colleagues are likely to support a rate increase at some point this year. These statements are in stark contrast with her claims from last week, when the results of the Fed meeting revealed that only 4 of the 17 committee members voted for a rate hike. Yellen itself did not disclose her personal relationship to the rate increase since July.
After the July meeting of the Fed, China has undermined world markets, devaluing the national currency in an effort to support its slowing economy. Earlier this week, there was published preliminary data on manufacturing activity in September, which was at its lowest level in six years.
The US Dollar Index, which is an indicator of the strength of the US currency against a basket of six major currencies, is now showing neutral dynamics at the level of 96.11.
On the eve of Thursday, dollar was traded weaker in almost all major currency pairs on published mixed economic data.
The US Labor Department has reported the number of new applications for unemployment benefits, which rose by 3000 to the value of 267 000, from 264 000 last week, despite the fact that growth was expected by 7000.
In turn, the US Commerce Department said that orders for durable goods in the last month decreased by 2.0%, in line with expectations. At the same time, the same figure for July was revised down from the previously announced 2.2% to 1.9%.
The index of orders for core durable goods, which takes no account of transport, remained unchanged, while there was expected a growth by 0.1%. The same index for July rose by 0.4%.
Also, there was released data on new home sales, which rose in August by 5.9% to 552 000 units from a revised level in July amounting 522 000. Analysts expected a growth in August by 1.6%.