Yellen Remarks Incite Downside Momentum In JPY, AUD

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The yen and the Aussie ticked lower on Tuesday in Asia with comments in a letter released by the Federal Reserve chief in focus.

Federal Reserve Chair Janet Yellen said Monday she and her colleagues hope and expect the economy will continue to expand and if that is the case, it will be appropriate to raise interest rates.

USD/JPY changed hands at 122.93, up 0.06%, while AUD/USD traded at 0.718, down 0.06%.

Ahead, Japan reports its PMI for November with a level of 52.1 seen, down from 52.4 in October.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell 0.06% to 99.77.

Overnight, the dollar remained higher against the other major currencies on Monday, despite the release of disappointing U.S. housing sector data, as expectations for a December rate hike by the Federal Reserve continued to support the greenback.

The U.S. National Association of Realtors said that existing home sales decreased by 3.4% to 5.36 million units last month from 5.55 million in September. Analysts had expected existing home sales to fall 2.3% to 5.40 million units in October.

But demand for the dollar continued to be underpinned by expectations that the Fed is on track to raise interest rates next month.

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