Precise Investors Editorial Team
Yen’s USD/JPY pair dropped 0.2%, with the currency taking some support from strong wage income data
Most Asian currencies moved in a flat-to-low range on Thursday.
The yen found some strength after data showed wage incomes rose as expected in September and improved from their slowest pace of growth in over a year.
Yen’s USD/JPY pair dropped 0.2%, with the currency taking some support from strong wage income data.
Overall wage incomes increased 1.9% in September, as expected, and improved substantially from 1.3% in August– their lowest figures in a year.
Strong wage growth gives the Bank of Japan more impetus to raise interest rates. Thursday’s figures came just a day after the minutes of the BOJ’s September meeting showed policymakers leaning towards a rate hike in the coming months.
The BOJ minutes had also offered the yen some support, with markets now positioning for a BOJ rate hike by as soon as December.
Broader Asian currencies moved in a flat-to-low range.
The Australian dollar’s AUD/USD pair moved little, showing limited reaction to strong export and trade balance data for September.
The yuan’s USD/CNY pair was flat, even as the People’s Bank set a slightly stronger midpoint for the day.
The Singapore dollar’s USD/SGD pair declined 0.1%, while the Taiwan dollar’s USD/TWD added 0.2%.
Meanwhile, the U.S. dollar was buoyed by growing bets that the country’s central bank will not cut interest rates in December, especially after Chair Jerome Powell warned that a December rate cut was not a given.
Strong private economic data also buoyed the dollar, as ADP nonfarm employment read stronger than expected for October, indicating that the U.S. labour market remained robust.
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