USD/JPY rises above 144.00 after US mixed flash PMI

• USD/JPY rises above 144.00 after the release of mixed preliminary US S&P Global PMI data for September.
• The US services PMI came in better than forecast at 55.4.
• Investors await BoJ Ueda’s speech on Tuesday.

USD/JPY is moving higher above 144.00 in the North American session on Monday following the release of mixed preliminary S&P United States (US) PMI (Global Purchasing Managers) data for September.

The report showed that the composite PMI expanded at a slower pace to 54.4 from 54.6 in August. A sharp contraction in manufacturing activity was offset by better-than-expected activity in the services sector. Manufacturing PMI unexpectedly fell to 47.0, which was expected to have improved to 48.5 from the previous release of 47.9. The services PMI, a measure of activity in the services sector, which accounts for two-thirds of the US economy, landed higher at 55.4 than estimates of 55.2, but remained lower than the previous reading of 55.7.

The US Composite PMI led to some recovery in the US Dollar (USD) as the US Dollar Index (DXY) gathered strength to break decisively above 101.00. Going forward, the US dollar will be guided by market expectations of the Federal Reserve’s (Fed) interest rate outlook.

The asset is struggling for direction as investors await a speech by Bank of Japan (BoJ) Governor Kazuo Ueda on Tuesday, where he is expected to provide fresh guidance on the interest rate outlook.

Last week, Kazuo Ueda’s comments in the press conference after the monetary policy decision indicated that the BoJ is in no rush to raise interest rates further. BoJ Governor Kazuo Ueda said: “Our decision on monetary policy will depend on economic, price and financial developments at the time. Real interest rates in Japan remain extremely low. If our economic and price forecasts are realized, we will raise interest rates and adjust the degree of monetary support accordingly,” at the press conference.