The US Dollar had held steady earlier in Friday trading in Asia but is now struggling for traction as investors ready themselves for the inauguration of Donald Trump as the 45th President of the United States. Analysts believe that the inauguration and Trump’s inaugural speech could be the catalyst for some volatility for the greenback. Solid and unexpectedly upbeat economic data helped to lift the greenback with unemployment claims falling below expectations, both for initial and continuing claims. Housing data was also positive, with housing starts improving in December on a month-over-month basis. The Philadelphia Federal Reserve Bank also released its January manufacturing survey which showed a reading of 23.6 against expectations of a decline to 15.8.
As reported at 10:51 am (JST) in Tokyo, the USD/JPY was trading at 114.62 Yen, down 0.37%; the US Dollar had hit a 1-month high yesterday at 115.63 Yen, after the data release. The EUR/USD was higher at $1.0682, up 0.20%; on Thursday, Mario Draghi, head of the European Central Bank, spoke of sagging inflation and the likelihood of more stimulus ahead which weighed on the common currency which hit a low of $1.0589 after the Draghi speech.
China Data Could Help Aussie
Aside from the presidential inauguration, markets are also looking ahead to Chinese economic data, which includes Q4 GDP figures which are forecast to have grown by 6.7%. The AUD/USD was higher at $0.7586, a gain of 0.40%; higher growth in China is often reflected in the Aussie Dollar given the high degree of trading activity between China and Australia.