The US Dollar edged higher against the Japanese Yen in early Asian trading after Friday’s unexpectedly upbeat labor report. The non-farms payroll report showed 209,000 new jobs in July, against only 183,000 expected; June’s private sector jobs was revised upward to 231,000 from 222,000. With the NFP in the rear-view mirror, FX traders will be looking to this week’s release of personal inflation data to gauge whether or not the greenback can hold onto positive momentum. Analysts are forecasting a rise in personal inflation to 1.8% in July (year-over-year) from 1.6% in June.
As reported at 11:03 am (JST) in Tokyo, the USD/JPY was trading at 110.706 Yen, up 0.05%; the pair’s trading range for the day is from a low of 110.652 Yen to a peak of 110.880 Yen. The NZD/USD was trading at $0.7409, down 0.09%. In Australia, the Dollar is under some pressure with the AUD/USD trading at $0.7941, up 0.17%.
Hopes High for Upbeat Inflation
Analysts say that this week will be important for the greenback. The slow rise in yields of US Treasuries, despite the upbeat labor figures, suggests that investors are still worried about slowing inflation. Only with upbeat inflation data, both consumer and producer prices, will those concerns be minimized. Producer prices will be announced on Thursday while CPI numbers come out on Friday.