Dollar-yen holds near 159.6 in Sydney as soft U.S. data cap gains

Dollar-yen stayed range-bound after the New York session, trading at 159.62-63 yen in early Sydney on the 19th versus 159.41-42 a day earlier, as modest dollar buying kept the pair in the low 159 range but currency intervention fears near 160 and the earlier drag from soft U.S. data continued to limit direction. The prior New York session was described in two reports with different closing levels, around 159.61 from 159.46 in one and 159.43 from 159.72 in the other, though both agreed weaker U.S. housing, trade and activity data eased Treasury yields and capped gains. In Sydney, the Australian dollar slipped to $0.7084 from $0.7105 and to 113.08-10 yen from 113.26-27, the New Zealand dollar fell to $0.5875-76 from $0.5902-03 and to 93.78-80 yen from 94.09-10, and the euro was nearly unchanged at $1.1574-75 while edging up to 184.76-77 yen from 184.59-61. The softer tone in the Australian and New Zealand dollars pointed to caution toward commodity-linked currencies, while speculation over European Central Bank policy and expectations for Federal Reserve rate cuts left the broader market without a clear trend.

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