Forex - Dollar lower vs yen, flat vs euro in Sydney afternoon ahead of US data |
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Thu, 01 Mar 2007 04:54
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SYDNEY (XFN-ASIA) - The US dollar was lower against the yen and steady against the euro in mid-afternoon trade with investors now turning their attention to tonight's key US economic indicators including the core PCE deflator for January ( the Federal Reserve's preferred measure of inflation) and the national ISM manufacturing data for February, dealers said.At 2:18 pm (0318 GMT) here, the dollar was at 118.40 yen down from 118.61 in morning trade while the euro was at 1.3225 usd, little changed from 1.3224 earlier.Dealers said exchange rates are likely to keep stabilizing with trades moving back into tight rages so long as equity markets continue to steady after Tuesday's heavy sell-off in China, which sparked a wave of panic selling around the globe.But, they noted the greenback still remains susceptible to further data weakness in the US, with new home sales for January released yesterday recording a 16.6 pct plunge -- the biggest fall in 13 years.'With the US economy going through a weak patch at present this will keep the US dollar under pressure,' NAB Capital strategists said.The strategists added that weak US economic reports are also weighing on industrial metals prices, which dropped overnight, while tonight sees the release of the eurozone and German PMI's for February, prior to the US ISM.They said any indication of a further slowdown in global industrial production growth will likely again weigh on industrial metals and provide a cap on any further recovery in currencies such as the Australian dollar.'The Australian dollar looks to have solid support towards 0.7850-0.7855 usd but will run into resistance towards 0.7900-0.79005 usd levels,' the NAB strategists said.'The sharp shift in investor risk-appetite and a jump in yen volatility will serve to produce much more caution towards carry trades going forward,' they added.Sydney 2.18 pm (0318 GMT) vs Sydney 10.05 am (2305 GMT Wednesday)US dollar118.40 yen vs 118.61 yen1.2182 sfr vs 1.2195 sfrEuro1.3225 usd vs 1.3224 usd156.62 yen vs 156.88 yen1.6115 sfr vs 1.6125 sfr0.6737 stg vs 0.6738 stgSterling1.9632 usd vs 1.9625 usd232.45 yen vs 232.80 yen2.3917 sfr vs 2.3926 sfrAustralian dollar0.7863 usd vs 0.7876 usd0.4003 stg vs 0.4013 stg93.130 yen vs 93.445 yenNew Zealand dollar0.7001 usd vs 0.7007 usdpaul.daniel@xfn.com
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Forex - US dollar softer in Sydney afternoon; trading wanes due to Japan holiday 