The yen gained on safe haven demand in Asian trade today as investors were cautious in a risk-off environment. Hurting risk appetite was downbeat trade data out of China which raised concerns about the health of the world’s second largest economy.
Exports from China missed economists’ expectations, falling 25.4 percent from a year earlier, while imports fell by 13.8 percent.
Meanwhile, other data out of Japan today showed the economy contracted an annualized 1.1 percent in the final quarter of 2015, less than the initially estimated 1.4 percent contraction.
The dollar slipped against the yen to touch a one-week low of 112.75 yen. The euro dropped about 0.4 percent to 124.47 yen.
The euro edged up about 0.1 percent to $1.10220, moving further off a one-month low of $1.08255 touched on March 2. Expectations of ECB policy easing this Thursday will likely cap further gains in the euro.
The commodity-price linked Canadian and Australian dollars gave back some gains made after reaching multi-month highs due to the recent rally in commodity prices.
The rise in oil prices helped the oil-linked Canadian dollar to touch highs not seen since last November as Brent crude jumped more than 5 percent to above $40 a barrel for the first time this year. USD/CAD touched $1.3262 yesterday.
Aussie reached its strongest since July, as AUD/USD touched $0.7486 yesterday, before reaching $0.7427 today.
The post Yens rebounds on safe haven demand after soft China data appeared first on FXTM Blog.