Japanese Yen Falls ahead of Release of U.S. Economic Reports

As reported at 4:02 p.m. (AEST) in Sydney trading the Japanese Yen and the U.S. Dollar both fell on the slight ebbing of risk aversion, propping up high yielding currencies such as the Australian and New Zealand dollars. Investors continue to exercise caution ahead of the release at 12:30 p.m. (GMT) of U.S. GDP data, and the conclusion today of the 2-day meeting of officials of the U.S. Federal Reserve Bank; officials of the Federal Reserve are expected to issue a press release at 6:15 p.m. (GMT) and investors are hoping for a continuance of quantitative easing.

In response to yesterday’s release of better than expected U.S. economic data, indicating that consumer confidence is improving, many investors are unwinding their recent safe-haven trades. The Euro gained .8% on a 6-week low, trading at 127.83 Yen on the EBS platform. Meanwhile, the Australian Dollar rose more than 1.5% from a recent 1-month low, trading at 69.27 Yen. The U.S. Dollar moved up against the Japanese Yen also, gaining .4% to trade at 96.82 Yen. As the result of a holiday in Japan, trading in Asia was very light.