Article by ForexTime
Data out of China this morning helped keep market sentiment upbeat, enabling many regional stock markets to minimize earlier losses. Risk appetite consequently kept the yen weak.
Steady Chinese inflation numbers helped provide comfort about the health of the world’s second largest economy.
According to China’s National Bureau of Statistics, the official consumer price index rose 2.3 per cent year-on-year in April, the third such reading in a row and in line with economists’ forecasts. Core inflation, which does not include food or energy costs, was up 1.5 percent year-on-year.
The yen weakened 0.4 per cent to help USDJPY rise to 108.82.
The US dollar index, a gauge of the dollar against a basket of major currencies, was up 0.1 per cent at 94.208 and on track for its sixth straight advance.
China’s inflation data released provided some respite for the Australian dollar, since China is a major trading partner for Australia. Reversing an initial decline, the Aussie was up 0.2 per cent, with AUDUSD up to $0.7337 after falling to a two-month low of $0.73.
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Brent crude, the international benchmark, was up 0.4 per cent at $43.82 a barrel on Tuesday, having fallen 3.8 per cent in the previous session, while West Texas Intermediate, the US marker, was flat at $43.43.
Gold, which often exhibits an inverse relationship to the dollar, was up 0.1 at $1,265.28 an ounce after falling 1.9 per cent on Monday.
Article by ForexTime
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