Yen Gains Strength Ahead of Key Economic Releases

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The yen was slightly stronger in early Asia on Wednesday ahead of a look at company prices and machinery orders.

USD/JPY changed hands at 122.83, down 0.02%, while AUD/USD traded at 0.7066, up 0.06%.

In Japan, the corporate goods price index is due for October with a fall of 3.5% seen year-on-year, as well as core machinery orders for September with a decline of 4.0% seen year -on-year.

Ahead in Australia comes employment data with a gain of 15,000 jobs seen in October.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.02% at 99.04.

Overnight, the dollar edged lower against the other major currencies on Wednesday, but remained close to a seven-month peak as growing expectations for a U.S. rate hike before the end of the year continued to support the greenback.

The greenback remained supprted as last week’s strong U.S. employment data paved the way for the Federal Reserve to raise interest rates at its December meeting.

The Labor Department reported on Friday that the U.S. economy added 271,000 jobs last month, well ahead of expectations of the 180,000 expected by economists and the largest increase since December.

The unemployment rate fell to a seven-and-a-half year low of 5.0%.

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