29th Nov 2013 02:32
BRUSSELS (Alliance News) - The yen edged lower against majority of its key counterparts on Friday morning in Asia following the release of Japan's inflation and industrial production data for October.
Industrial production in Japan grew 2.0 percent month-over-month and 6.3 percent annually in October following previous month's growth rates of 1.3 percent and 5.1 percent, respectively. Industrial output was expected to add 2.0 percent on month and 6.3 percent on year in the month.
Consumer prices in Japan rose 0.9 percent in October, its highest level in more than 5-years and in line with the market expectations, suggesting the government has made significant progress in deflation control. The core inflation index, excluding food and energy prices, rose 0.3 percent in October from a year earlier.
Core consumer prices in the Tokyo region, rose 0.6 percent in November from a year earlier. The figure rose more than economists' forecast for a 0.4 percent increase.
Majority of Asia-pacific equity markets are trading red on Friday, the last trading day of the month. There were no significant cues overnight as the US markets were closed for the Thanksgiving Day holiday on Thursday.
The yen slipped to 102.60 against the US dollar, its weakest level since May 23. The symmetrical triangle break-out above the 99.0 level took a solid shape in the USD/JPY pair since breaking that level in early November and the pair is heading towards the 103.0 level, which is the next support for the yen.
The Japanese currency dropped to 167.89 against the pound, a level not seen since October 2008. The yen has depreciated almost 18 percent against the pound thus far this year and its next medium-term support is visible around the 170.0 area.
The yen reached below the 113.0 level against the Swiss franc for the first time in record, falling as low as 113.40. Against the euro, the Japanese unit slipped to 139.70, its lowest level since October 2008. The next major support for the yen against the common currency is seen around the 141.50 area.
The yen showed mixed trading against the resource-linked currencies on Friday. While the yen lost ground against the Canadian dollar, it drifted higher against the currencies of Australia and New Zealand as the latter pairs were mostly down on lower commodity prices overnight.
The Japanese unit dropped to 96.83 against the Canadian dollar, its weakest level since September 20. Further downside pressure could lead the yen challenging the 97.0 support and beyond, as the pair has been moving in a broad range-bound pattern since late May.
The yen, on the other hand, advanced to a 2-day high of 81.81 against the New Zealand dollar and a session's high of 92.74 against the Australian dollar. On the downside, the Japanese currency may find target levels at 82.20 against the kiwi and 92.30 against the aussie.
Looking ahead, Japan is set to release its housing starts, vehicle production and construction orders-all for October, later in the session.
German retail sales, eurozone unemployment rate and the UK mortgage approvals-all for October, Swiss KOF leading indicator, eurozone inflation and the UK Nationwide house prices-all for November are expected to garner the market attention in the European session.
Canada's gross domestic product report for the quarter ending September is scheduled to release in the North American session. Canadian economy is expected to expand 0.2 percent month-over-month in September and a 2.5 percent annualized growth is predicted in the third quarter.
Copyright RTT News/dpa-AFX