FX News - December 6: Yen Weaker Vs Greenback

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While the yen showed signs of strength during yesterday's trading,  it weakened once again today after talks that Japan's Government Pension Investment Fund would make moves to weaken the yen, and the market's anticipation of economic data coming from the US later today. 

The US reports would be headlined by the Nonfarm payrolls data for November, which is expected to be at 180K compared to the previous 204K. However, it is not uncommon for the NFP data to be vastly different from expectations, so a lot volatility should be expected prior to its release(1:30PM GMT). Aside from the NFP data, another major report from the US will be the Unemployment rate for November. From the previous 7.3%, it is expected to be slightly lower at 7.2%.

Because of these developments, the USD/JPY has returned to the 102.00 level today. It is currently trading at 102.10, with initial resistance seen at 102.08, followed by 102.33. Meanwhile, initial support is at 101.24, followed by 100.98.

Like the traders of the yen, those trading the euro are also on the lookout for the US data coming out later today. The EUR/USD pair has remained largely flat since yesterday as it hovered above the 1.3650 zone. It is currently trading at 1.3662, with initial resistance seen at 1.3741, followed by 1.3775. Meanwhile, initial support is at 1.3606, followed by 1.3572.

Earlier today, Australia released a positive Performance of Construction Index for November, but has failed to revive the struggling AUD/USD pair. From the previous 54.4, the number rose to 55.2. The release of US economic data is also expected to affect the pair later today. 

The AUD/USD pair is currently trading at 0.9049. Initial resistance for the pair is at 0.9112, followed by 0.9135. Meanwhile, initial support is at 0.9034, followed by 0.9011.

By FX Strategy Team, Published on 6th of December 2013
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