Dollar Eases Against Yen on Risk, Aussie Declines on Retail Sales

On Monday, the greenback decline against the yen and the Aussie plunged as retail sales data weigh up with analysts watching on political danger elements with President Donald Trump’s administration on the back foot over its immigration and other policies.

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On Monday, the  greenback decline against the yen and the Aussie plunged as retail sales data weigh up with analysts  watching  on political danger elements with President Donald Trump’s administration on the back foot over its immigration and other policies.

USD/JPY declined  0.06% to 112.68, while the Australian dollar glided lower after poor domestic retail sales data, , with AUD/USD declined 0.25% at 0.7661, 03:42AM ET.

In Japan, average cash earnings edged up 0.1%  YoY in December, below the 0.4%  increased expected. On a yearly inflation-adjusted basis, wages declined in December for the 1st time in a year as an increase in the cost of living outdid nominal pay hikes.

The labor ministry stated, adjusted real wages declined 0.4% in December from a year before, following a revised flat reading in November.

In Australia, retail sales plunged 0.1% in December MoM, much weaker than the 0.3% gain perceived. In China, the Caixin Services PMI  remained  in expansion at 53.1, but missed the expected 53.6 level and was below the previous month amount of 53.4.

The U.S. dollar index, which gauges the greenback’s strong point against a trade-weighted basket of six major currencies, increase 0.26% to 99.95.

In the week onward comes monthly trade statistics in the U.S. in an otherwise thin week for economic data.

The previous week, the greenback fell on Friday as the latest U.S. employment report indicated that jobs development beat expectations, but wage development  remained unenthusiastic, which will possibly prompt the Fed Reserve to adopt a more careful approach on increasing interest rates this year.

The U.S. economy added 227,000 jobs in January from the previous  month, while the unemployment rate moved up to 4.8% from 4.7% in December, as more Americans joined the workforce, according to the  Labor Department

Economists had forecast nonfarm payrolls increasing by 175,000 last month.  However, average hourly earnings increased 2.5% in January from a year before, slowing from 2.8% in December.

The slowdown in wage development stimulated assumption that the Fed Reserve will avoid hiking interest rates too fast.

On Wednesday, in its latest monetary policy announcement, the Fed stuck to its outlook that the economy is strengthening,however, gave no clear indication on the scheduling of its next rate hike as representatives wait to measure the possible economic effect of the Trump administration’s protectionist policies and latest remarks about currencies.

“The greenback has been hard hit by concerns that a preference for a weak dollar could have a prominent role to play in Trump’s ‘America First’ agenda,” according to the report.

On Additional News

The greenback increased  against the euro, with EUR/USD down 0.32% to 1.0747, 03:42AM ET.

Data on Monday  in the euro zone  indicated that German factory progress hit a two and a half year peak in January, with factory orders increasing by 5.2%. It has been the strongest surge since January 2014.

Compared to the pound, the dollar was also higher, with GBP/USD down 0.25% at 1.2453.

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