By: DailyForex.com
The US Dollar slipped broadly in Asian trading after the release of the latest economic data from the US lowered expectations of an interest rate increase this year. The rise in commodity prices also helped to support commodity-linked currencies like the Canadian and Australian Dollars. Trading has been relatively light and within narrow ranges as, to a large extent, FX traders are in wait-and-see mode ahead of a slew of central bank policy meetings.
As reported at 10:12 am (JST) in Tokyo, the USD/JPY was trading at 101.90 Yen, down 0.18%; the pair had earlier traded about 0.3% lower with the greenback poised to lose nearly 0.8% for the week. The Japanese Yen has been broadly supported by FX traders seeking its safe haven status. The AUD/USD was down 0.12% to trade at $0.7510 while the USD/CAD was trading higher at C$1.3159, up 0.547%.
Retail Sales Misses Forecast
US retail sales slipped in August to -0.3% against expectations of a fall to -0.1%; July’s figures were upwardly revised to 0.1% from an initial flat reading. Analysts blame tepid car sales for the unexpected decline. Later today, markets will turn their attention to personal inflation figures from the US, with expectations of a slight rise to 1.0% (from 0.8% in July). Expectations for core inflation, which strips out volatile food and energy prices, are unchanged from July at 2.2%.