..USD/JPY edges lower as markets eye ECB/EU summit

The U.S. dollar edged lower against the yen on Thursday, as investors eyed the outcome of the European Central Bank’s policy meeting later in the day and hoped for positive results at this week’s European Union summit.

USD/JPY hit 77.57 during European morning trade, the pair’s lowest since December 1; the pair subsequently consolidated at 77.60, shedding 0.09%.

The pair was likely to find support at 77.47, the low of December 1 and resistance at 77.78, the high of December 7.

Market sentiment found support as the European Central Bank was expected to cut interest rates by 0.25% to 1% at its policy-setting meeting later Thursday.

Meanwhile, France and Germany were to present a plan to amend EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, at a two-day economic summit.

Earlier Thursday, government data showed that core machinery orders in Japan fell unexpectedly in October, tumbling 6.9% after an 8.2% decline the previous month.

Analysts had expected core machinery orders to rise 0.2% in October.

The yen was steady against the euro with EUR/JPY unchanged to hit 104.18.

Later in the day, the U.S. was to release official data on initial jobless claims.

NZD/USD higher as RBNZ leaves rates unchanged ..

The New Zealand dollar was slightly higher against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand left its benchmark interest rate unchanged but gains were limited amid uncertainty over the outcome of a key European Union summit.

NZD/USD hit 0.7817 during late Asian trade, the daily high; the pair subsequently consolidated at 0.7804, rising 0.09%.

The pair was likely to find support at 0.7722, the low of December 1 and resistance at 0.7927, the high of November 14.

The RBNZ left its benchmark interest rate unchanged at 2.5% earlier in the day.
Commenting on the decision, RBNZ Governor Alan Bollard mentioned “continuing difficulties related to sovereign and bank debt in a growing number of European economies resulting in high levels of volatility in financial markets.”

Market sentiment also found support as the European Central Bank was expected to cut interest rates by 0.25% to 1% at its policy-setting meeting later in the day.

Meanwhile, France and Germany were to present a plan to amend EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, at a two-day economic summit.

Elsewhere, the kiwi was higher against the Australian dollar with AUD/NZD shedding 0.15%, to hit 1.3179.

Earlier Thursday, official data showed that Australia’s unemployment rate rose unexpectedly in November, ticking up to 5.3%, while the number of people in employment fell by 6,300 after rising by 16,800 the previous month.

Later in the day, the U.S. was to release official data on initial jobless claims.