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    Yen flat ahead of current account data, China trade ahead

    The yen held steady ahead of current account data on Wednesday in a fairly busy Asian data day ahead.

    USD/JPY changed hands at 107.36, flat, while AUD/USD traded at 0.7453, down 0.07%.

    In Japan, the adjusted current account is due with a surplus of ¥2.04 trillion seen. Then comes GDP for the first quarter with a 1.9% gain seen year-on-year and a 0.5% pace quarter-on-quarter.

    Later, Australia reports home loans for April with a 2.5% increase expected month-on-month and housing finance is also due with a 1.5% gain posted in April.

    In China, a trade balance of $50.0 billion is expected for May on imports that were seen down 6.0% and exports showing a fall of 3.6% year-on-year.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 93.84.

    Overnight, the dollar remained close to one-month lows against the other major currencies on Tuesday, after Federal Reserve Chair Janet Yellen on Monday sparked fresh uncertainty over the timing of future U.S. rate hikes.

    Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

    Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

    The remarks came after data on Friday showing that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010.

    The disappointing data ruled out chances for a June rate hike and prompted investors to push back expectations on the timing of the next rate hike until later this year.

     


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