Asian session review: US dollar rose to its highest level since late May in 2019 against the yen

The US dollar reached an eight-month peak against the yen on Friday after upbeat US economic statistics, while the yuan strengthened due to Chinese GDP data that improved market sentiment.

The U.S. Department of Commerce reported on Thursday that retail sales rose 0.3% in December, as expected. The data for November was revised up to +0.3% from +0.2%.

Meanwhile, the Federal reserve Bank of Philadelphia said that manufacturing activity index in the mid-Atlantic region rebounded in January to its highest level in eight months, while prospects are most bright for the last year and a half.

Other data showed that the number of initial jobless claims fell more than expected last week.

Data from the National Bureau of Statistics showed that gross domestic product grew 6.0% y/y in the fourth quarter, the same rate as seen in the third quarter and in line with expectations. Industrial output accelerated unexpectedly to 6.9% in December from 6.2% in November. The rate was expected to ease to 5.9%. Meanwhile, retail sales growth stabilized at 8% in December. Experts expected growth to slow to 7.8%

The Australian dollar, often seen as a proxy bet on the Chinese economy, was little changed. The currency was under pressure amid concerns about forest fires, which increased expectations of a rate cut by the RBA as early as next month.