The USD/JPY inched lower on Tuesday after mixed economic data in Japan. The pair is trading at 110.52, declining from its previous level.
The USD/JPY slipped after Japan recorded uneven economic data. Japan retail sales for May declined from the previous 11.9%. The sales closed in at 8.2% YoY surpassing the 7.9% estimate forecast. The country’s retail sales have been on an upward trend for three consecutive months.
Despite, being stronger than the estimated forecast, the jump was not a big shift to the country’s economy. The rise in retail sales was boosted by gains in general merchandise, cars, fuel, and clothing. This sectors had taken a nosedive last year due to the pandemic.
Japan’s unemployment rate increased to 3.0% in May. This was weaker than the estimated 2.9% and the highest level in five months. Job availability ratio remained unchanged in May.
The number of employed people has been on a losing streak for three consecutive months. The number of employed people slipped 130,000 to 66.45 million. The number of unemployed people was up 100,000 to 2.04 million.
810,000 left their jobs voluntarily while 630,000 were laid off. 480,000 were new job seekers. The gender gap in the unemployment rate tightened. The jobless rate for men was on a standstill at 3.2% while that for women was up 0.4% to 2.7%.
Japan, the world’s third largest economy is set to record an annualized expansion of 0.5%. The economy took a sharp dive in the first quarter where it fell 3.9%.
US Economic Outlook
The USD/JPY pair will react to the US CB Consumer Confidence later in the day. This is one of the most important numbers for policy makers. The consumer confidence reflects the economic rate of expansion for the country. The numbers are expected to have closed higher in June.
Investors will also be on the lookout for the ADP Nonfarm Employment Change later in the week. The employment numbers are expected to decline from 978,000 to 600,000 in June.