The Japanese yen spiked higher across the board on Tuesday morning in Asia. The yen advanced to multi-day highs against the currencies of the U.S. and U.K.
In economic news, Japan’s monetary base rose 5.2 percent in December from a year earlier, the Bank of Japan said in a report today, standing at 97.21 trillion yen. This was much higher than the previous month’s 3.8 percent. Seasonally adjusted, the monetary base jumped 18.5 percent in December to 94.32 trillion yen.
The yen climbed to a 6-day high of 148.24 against the pound and a 5-day high of 92.13 against the US dollar by 8:05 pm ET, compared to yesterday’s closing values of 148.86 and 92.53, respectively. On the upside, the Japanese unit may find target levels of 147.1 against the pound and 91.8 versus the greenback. Currently, the yen is worth 148.43 per pound and 92.3 per dollar.
In the US, the Department of Commerce report showed yesterday that construction spending fell 0.6 percent to an annual rate of $900.1 billion in November from the revised October estimate of $905.6 billion. Economists had been expecting spending to decrease by about 0.5 percent.
Meanwhile, the Institute of Supply Management said its index of activity in the manufacturing sector jumped to 55.9 in December from 53.6 in November, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 54.3.
The yen also drifted higher to 89.55 against the Swiss franc and 132.87 versus the euro around 8:05 pm ET. The Japanese currency that closed yesterday’s deals at 89.87 against the franc and 133.36 versus the euro is currently quoted at 89.75 and 133.1, respectively.
Traders are looking forward to the upcoming European session, in which the French Consumer Confidence, German unemployment rate and the euro-zone consumer price index data-all for the month of December are slated for release.
The yen staged a rebound after hitting a 10-week high against the Australian dollar in early Asian deals today. The yen advanced to 84.2 against the aussie, up 0.6 percent from 84.67 hit earlier in the session. The aussie-yen pair, which ended Monday’s North American trading higher at 84.46, is presently quoted at 84.27.
The Australian new homes sales rose 0.3% in November, according to the survey results published by the Australian Housing Industry Association. Detached house sales rose 0.8%, but this was offset by a 4.9% decline in multi-unit sales-report showed.
The yen also drifted higher to 67.66 against the NZ dollar and 88.59 versus the Canadian dollar by 8:25 pm ET, compared to yesterday’s closing values of 67.98 and 88.86 respectively. As of now, the yen is trading at 67.7 against the kiwi and 88.77 versus the loonie.
Across the Atlantic, the Canadian industrial product price and raw materials price data for November are scheduled to be released at 7:30 am ET.
From the U.S., the factory goods orders and pending home sales for November are expected at 10:00 am ET.