Japanese Yen Falls Amid Strong China Data
The Japanese yen lost ground against its major counterparts in
the Asian session on Tuesday amid rising risk appetite, as China's
imports and exports continued their strong rebound in March,
signaling a recovery in the economy as global demand improves from
the coronavirus crisis.
Official data showed that China's exports rose 30.6 percent
year-on-year in March, while imports jumped 38.1 percent from last
Investors await earnings from some of the largest U.S. banks
amid spikes in Covid-19 cases and troubled vaccine rollouts in
parts of the world.
U.S. bond yields rose after the Treasury's sales of three- and
10-year notes attracted decent demand.
Boston Federal Reserve Bank President Eric Rosengren said on
Monday that the economy is likely to grow rapidly this year,
although the labour market recovery could take longer.
U.S. inflation data is due later in day.
The yen weakened to 109.75 against the greenback and 130.50
against the euro, after rising to 109.35 and 130.22, respectively
earlier in the session. The yen may locate support around 111.00
against the greenback and 133.00 against the euro.
The yen touched a 4-day low of 150.83 against the pound and near
a 2-month low of 118.74 against the franc, dropping from its early
highs of 150.18 and 118.33, respectively. The next possible support
for the yen is seen around 152.00 against the pound and 124.00
against the franc.
Reversing from its early 4-day highs of 76.76 against the kiwi
and 87.00 against the loonie, the yen eased off to 76.96 and 87.26,
respectively. The yen is poised to challenge support around 79.00
against the kiwi and 90.00 against the loonie.
In contrast, the yen held steady against the aussie, trading in
the range of 83.30 to 83.46. The pair had ended yesterday's deals
Looking ahead, German ZEW economic sentiment for April is due
out in the European session.
U.S. CPI for March is scheduled for release in the New York