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The yen edged higher against the dollar as Japan’s third quarter economic report came slightly higher than expected.

USD/JPY dropped 0.04 percent to 113.40. The exchange between the dollar and the British pound was last seen down 0.06 percent to 1.3157.

In Tokyo, the gross domestic product (GDP) for the third quarter came in at a provisional 0.3 percent increase on quarter as expected. It also came at a 1.4-percent pace for the year, which is slightly more than the 1.3 percent expected rise.

Meanwhile in Australia, the wage price index gained 0.5 percent, compared with a 0.7 percent rise seen on quarter, and at a 2.0 percent rise, compared with an expected 2.2 percent increase on year.

The US dollar index, which gauges the greenback’s strength against a basket of six other major currencies, was last seen 0.72 percent down to94.72.

Overnight, the dollar traded weaker against a basket of currencies. A surge in the pound and the euro to three-week highs, which followed a better-than-expected economic growth data from Germany, pressured the greenback. Additionally, the upbeat US wholesale inflation data did not manage to offset losses in the currency.

According to the Labor Department, its producer price index for final demand increased 0.4 percent in the previous month. During the 12 months through October, the PPI soared 2.8 percent after increasing 2.6 percent in September.

The euro jumped 0.93 percent to $1.1776, its three-week high. Germany, which is euro zone’s largest economy, swelled 0.8 percent in the third quarter of this year. The growth beat forecasts, which expected only a 0.6 percent rise.

This sharp leap in German GDP pushed higher growth in broader euro zone economy. Initial estimates for the third quarter showed that the trading bloc swelled at an annualized rate of 2.5 percent.

Aussie Dollar Skids

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The aussie dollar declined as much as 0.7 percent to $0.7578.

According to data, Australian wages increased only 0.5 percent in the third quarter and 2.0 percent for the year. These figures fall short of 0.7 percent and 2.2 percent respectively. This posed a challenged to the Reserve Bank of Australia’s opinion that wages would pick up.

According to Paul Dales, the third quarter result was “actually very disappointing and suggests that underlying wage pressures probably eased further.” Dales is the chief Australia and New Zealand economist at Capital Economics.

Declining equities also added to the pressure. Asian stocks slumped on Wednesday following weaker crude oil prices that took a toll on Wall Street.

The region’s stock market losses paved the way for the bolstering of sovereign bonds, pushing down the yields. 

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