Home Forex Yen, Dollar Gain as Aussie Weakens in Cautious Trade

Yen, Dollar Gain as Aussie Weakens in Cautious Trade

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The yen strengthened on Tuesday in Asia trade after a mixed bag of economic data out of Japan. The dollar also gained strength ahead of U.S. data, as the Aussie weakened in cautious trade.

The dollar was down 0.04% against the yen to trade at 111.90.

Household spending in Japan was down 1% in October month-on-month and 0.4% year-on-year. A 0.1% gain was expected month-on-month, and a 0.6% decline was projected year-on-year.

Unemployment came in at 3%, in line with expectations. Retail sales were up 0.1% year-on-year, missing expectations of a 1.2% increase.

The dollar climbed higher against other major currencies, as investors turned their focus to upcoming economic data and maintained hopes of a rate hike in December.

Preliminary economic growth data for the third quarter is expected later in the day, which will provide insight into the strength of the economy.

The euro slid 0.15% against the dollar, trading at 1.0599.

The currency remains in focus ahead of the referendum in Italy. Italians will vote on December 4 in a referendum on whether to change their constitution. The changes would allow the Prime Minister to implement much-needed economic reforms. The latest opinion polls, however, show that most Italians are not in favor of the changes.

The pound, meanwhile, gained on the dollar, up 0.43% to 1.2468.

The Bank of England announced earlier on Tuesday that net lending to individuals was up by £4.9 billion. Analysts were expecting an increase of £4.8 billion.

The dollar was up against its Canadian counterpart, trading up 0.28% at 1.3447. The dollar index gained 0.19% at 101.4.

Elsewhere, the Aussie weakened in cautious trade, while the kiwi gained.

The Australian dollar was up 0.08% against its U.S. counterpart to trade at 0.7475. NZD/USD gained 0.17% to 0.7085.

Investors are also focused on Wednesday’s OPEC meeting, as hopes of a production cut agreement dwindle.