Yen Advances On China Growth Concerns

(RTTNews) - The Japanese yen was higher against its major counterparts in the European session on Wednesday, as a slowdown in China's service sector activity raised concerns about a tepid economic recovery in the world's second-largest economy.

The Caixin/S&P Global services purchasing managers' index eased to 53.9 in June from 57.1 in May, marking the lowest reading since January when COVID-19 swept through the country.

Investors looked ahead to the release of the Federal Reserve's latest monetary policy meeting minutes as well as the U.S. jobs report for hints on the trajectory of U.S. monetary policy.

Survey from Jibun Bank showed that Japan's services sector continued to expand in June, albeit at a slower pace, with a services PMI score of 54.0.

That's down from the series record of 55.9 in May, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The yen edged up to 96.20 against the aussie, 144.23 against the greenback and 89.25 against the kiwi, reversing from an early low of 96.83, 2-day low of 144.73 and a multi-year low of 89.70, respectively. The next possible resistance for the yen is seen around 92.00 against the aussie, 134.00 against the greenback and 87.00 against the kiwi.

The yen touched 156.78 against the euro and 160.45 against the franc, setting 5-day highs. The yen is seen finding resistance around 142.00 against the euro and 145.00 against the franc.

The yen firmed to a 6-day high of 108.64 against the loonie, off an early 5-day low of 109.38. The currency is likely to challenge resistance around the 103.00 level.

The yen advanced to a 2-day high of 183.19 against the pound, from an early multi-year low of 184.01. On the upside, 180.00 is likely seen as its next resistance level.

Looking ahead, U.S. factory orders for May will be featured in the New York session.

At 2:00 pm ET, the Fed releases the minutes from June 13-14 meeting.