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The dollar continued to claw its way back up against its major counterparts, while yen crosses extended their weekly rallies ahead of Japan’s three-day weekend.

  • NZ business NZ manufacturing index slips from 58.2 to 56.2
  • Japan’s industrial production revised lower from -3.3% to -3.6% in May

Major Events/Reports:

Japan’s industrial production revised lower

Data from Japan saw its industrial production growth revised even lower in May. Industrial output fell by 3.6% instead of 3.3%, which still translates to an annualized advance of 6.5%.

The decline in shipments was revised from 2.8% to 2.9% while the capacity utilization rate was adjusted to reflect a 4.1% decrease and stocks was downgraded to 0.0% from 0.1%. On a brighter note, the inventory ratio remains unchanged at -1.9%.

Mixed price action for the dollar

As I mentioned in my U.S. session recap, better-than-expected lower-tier reports from Uncle Sam was largely offset by Yellen’s not-so-hawkish stance in Day 2 of her testimony.

And with no major reports on the docket today, Asian session traders mostly took cues from the dollar’s mixed price action during the previous sessions.

That didn’t stop equities traders from pricing in their relief over Yellen’s mixed tone, though.

  • Nikkei is up by 0.12% to 20,124.50
  • Australia’s A SX 200 is up by 0.34% to 5,756.30
  • Hang Seng is up by 0.08% to 26,368 and
  • Shanghai index is down by 0.08% to 11,636.84.

More gains for the yen crosses

The yen continued to take a beating across the board as traders extended trends from the previous sessions.

It also didn’t help the yen that Japanese traders will be on a holiday on Monday and, with the U.S. printing top-tier reports later, many are hesitant to put on new trading positions.

Major Market Mover(s):

USD

The dollar’s price action was a mixed bag of nuts with EUR/USD rising by 4 pips (+0.04%) to 1.1411, GBP/USD popping up by 6 pips (+0.05%) to 1.2952, and USD/JPY rising by 19 pips (+0.17%) to 113.41.

JPY

EUR/JPY gained an additional 25 pips (+0.19%) to 129.40, GBP/JPY rose by 32 pips (+0.22%) to 146.88, and CAD/JPY jumped by 10 pips (+0.11%) to 89.08.

AUD

Higher iron ore prices and a surprisingly strong imports data from China yesterday continued to support the commodity-related currency today.

AUD/USD is up by 9 pips (+0.12%) to .7741, AUD/JPY is up by 23 pips (+0.26%) to 87.76, and AUD/NZD is up by 13 pips (+0.12%) to 1.0574.

Watch Out For:

  • French banks out on Bastille Day holiday
  • 9:00 am GMT: Italy’s trade balance (2.43B EUR expected, 3.60B EUR previous)
  • 9:00 am GMT: Euro Zone trade balance (20.3B EUR expected, 19.6B EUR previous)