Japanese Yen Rises Despite Positive Trade News

The underperformance of Chinese data and a Hong Kong political crisis supported the safe haven currency. The Japanese yen rose on Wednesday in Asia despite positive trade news.

The USD / JPY pair fell 0.2% to 106.50 from 1:23 AM ET (05:23 GMT).

Tariffs on Chinese goods are being delayed on December 15th, while certain products are being removed due to “health, safety, national security and other factors”.

The tariffs were originally planned to take effect in early September.

Jen, which usually moves in opposite directions to most risk assets, also surprisingly increased. News sent higher stock markets.

The safe haven was already trading higher against the US dollar overnight as investor sentiment was rocked by political turmoil in Hong Kong.

Overnight, U.S. President Donald Trump tweeted that the Chinese government is moving troops to the Hong Kong border. On Tuesday, protesters managed to close Hong Kong airport for a second day.

Hong Kong leader Carrie Lam said earlier this week that further violence involving protests could push the territory “down a path of no return”.

“If we only think about the United States and China, there may be more room for dollar gains and yen losses, but that doesn’t mean the trade frictions are resolved.”

I do not expect significant (endangered) movements. “” There are still many geopolitical risks, such as Hong Kong, Brexit, and the Iranian situation.

Meanwhile, weaker than expected Chinese data also provided additional boost for safe yen.

Industrial output growth and retail sales both came in lower than expected, official data showed on Tuesday.

Chinese yuan won despite the data. The USD / CNY pair last traded at 7.0194, down 0.3%.

US Dollar Index tracing green to one basket of other currencies, up 0.1% to 97,678.

The AUD / USD pair and the NZD / USD pair declined 0.2% and 0.1%, respectively.forex.com

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