In early Friday trade in Asia, the US Dollar Index remained close to a 2-year peak as FX traders await today's release of growth data from the US. Currently, economists are predicting that 1st quarter results will show a fall to 2.1% (year-over-year) from 2.2% in the previous period. Core personal consumption is also expected to have decreased slightly to 1.6% from 1.8% (quarter-over-quarter basis). On Thursday, the US Census Bureau reported a rise in durable goods orders last month, the largest increase in eight months. With recent news of improving exports and retail sales, concerns over a slowdown in the US economy have begun to wane.
As reported at 9:48 am (JST) in Tokyo, the USD/JPY was trading at 111.5090 Yen, down 0.0592%; the pair has ranged from a peak of 111.588 Yen to a trough of 111.451 Yen. The AUD/USD was trading lower at $0.7013, down 0.019%, moving off the session trough of $0.70120. The NZD/USD was trading at $0.663, up 0.03%; the pair earlier ranged from a low of $0.66253 to a peak of $0.66385.
Japan Reports Upbeat Inflation Figures
The Japanese Yen is getting some report from unexpectedly upbeat inflation data. According to the Statistics Bureau, CPI (excluding fresh food) edged higher in April (year-over-year) to 1.3%, above the flat reading expected of 1.1%. Overall, CPI surged to 1.4% from 0.9%, above the 0.8% that economists had predicted. Retail trade also improved unexpectedly. News of a decline in industrial production was the only disappointment, with preliminary figures showing a significant drop to -4.6 from -1.1% (year-over-year).