Major currencies tread water ahead of euro zone, China data

Tuesday,   16-Apr-2019   09:01 AM (IST)

Major currencies remained confined to well-trodden ranges on Tuesday, as markets look next to European and Chinese data for more evidence that the worst may be over for the global economy. The yen remained close to 2019 lows against the U.S. and Australian dollars after investors reduced exposure to the safe-haven currency to seek higher yields elsewhere. The Japanese currency has fallen against both units after rising to recent highs in late March, said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. The dollar was unchanged at 112.00 yen. It traded less than a sixth of a percent off the year's high of 112.135 yen hit in early March. The Aussie was basically flat at 80.35 yen, also trading above its 200-day moving average, for the third session, after last breaching the key technical level in December last year. The data in focus includes Germany's ZEW economic index for April, due around 0900 GMT, and China's gross domestic product set for Wednesday, which is expected to offer more insight on the health of the world's second-largest economy. Chinese exports and credit data last week signaled some stabilization, prompting markets to adjust their outlook on global growth. Market participants eyed European manufacturing data due on Thursday for cues on whether growth in that region is improving. The euro was steady at $1.1307 after inching up less than a tenth of a percent overnight. The dollar index last stood at 96.932 after ending the previous session basically unchanged. Investors also kept their focus on trade issues, including talks between Japanese Economy Minister Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer.