Forex - Yen weaker ahead of BoJ consumer survey, thin trade

Written By Unknown on Kamis, 02 Oktober 2014 | 08.10

Investing.com - Investing.com - The Japanese yen weakened in early Asia on Thursday with a central bank survey on consumer views due later in the day and in overall thin trade in the region.

USD/JPY traded at 109.07, up 0.17%, while AUD/USD was nearly flat at 0.8735, up 0.02%.

Hong Kong and China markets remain shut on Thursday. Hong Kong will re-open on friday and mainland China on Oct. 8.

The Bank of Japan releases the fourth quarter survey on consumer sentiment and inflation expectations at 1330 Tokyo (0430 GMT).

In Australia, August trade balance and building approvals data are due at 1130 Sydney time (0130 GMT). The trade balance is expected to show the deficit narrowed to A$700 million in August compared with a deficit of A$1.4 billion in July, as exports fall is expected to be slower than fall in imports. For building approvals data, expectations are for a gain of 1.0%, a slower pace than the 2.5% increase in July.

Overnight, the dollar cooled its recent rally against most major currencies and traded mixed after data revealed U.S. factory floors may not be as bustling as markets once inspected.

The employment sub-index slowed to 54.6 from 58.1 in the previous month, while the new orders sub-index fell to 60.0 from 66.7.

At the same time, separate data revealed that U.S. construction spending fell 0.8% in August to an annual rate of $960.96 billion. Analysts were expecting a decline of only 0.5%, and the day's data gave a few investors room to sell the greenback for profits.

The dollar has posted noteworthy gains in recent sessions on sentiments U.S. monetary policy will tighten while Europe and Japan remain loose.

Elsewhere on Wednesday, data showed that the U.S. private sector added more jobs than expected in September, which gave the greenback some support.

Payrolls processor ADP reported that the U.S. private sector added 213,000 jobs last month, just ahead of expectations for jobs growth of 210,000. The economy created 202,000 jobs in August.

The report came ahead of Friday's government non-farm payrolls report, which includes both public and private sector employment. The government report was expected to show that the U.S. economy added more than 200,000 jobs for a sixth successive month in August.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.04% at 85.97.

On Thursday, the U.S. is to publish the weekly report on initial jobless claims as well as data on factory orders.

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