Japanese Yen Rises as Retail Sales Rebound

The Japanese yen rose on Thursday against major currencies as Japan's retail sales made an unexpected rebound. Presently, the euro lost 0.3% of its value to stand around ¥111.72, while the U.S. dollar retreated 0.22% to trade around ¥77.81. The yen found support in better than expected retail sales data. According to

, Japan's retail sales unexpectedly rose by 1.1% year-over-year in June, which represents the first increase since the earthquake/tsunami disaster. In May, the Japanese retail sales were 1.3% lower than a year ago. Japan has been beset by energy shortages and supply disruptions following the devastating earthquake and tsunami that have wrecked parts of the Japanese coast. In the aftermath of the disaster, consumers also started to tighten their belts. The latest data will be hailed by analysts as it indicates the Japanese consumers are ready to spend once more, which should have a spillover effect in the rest of the Japanese economy. Other winners in Thursday's early trading are the Kiwi and the Aussie. At around 6 am GMT, the U.S. dollar surrendered 0.3% of its value against the two currencies to trade around 0.9045 against the Aussie and 1.1458 against the Kiwi. At the same time, the euro fell 0.3% against the Aussie to 1.2298 and 0.28% against the Kiwi to 1.6472. The Kiwi found support in the latest statement by

. New Zealand's central bank has left its interest rates on hold, currently at 2.5%, but has also signaled a rise in interest rates should be expected soon. New Zealand's economy was hit hard by a devastating earthquake that has struck the country's second biggest city, Christchurch. The central bank responded by slashing its interest rates in order to help its economy recover more quickly. However, as the recovery gains speed, the central bank is more interested in tightening its belt in order to prevent the economy from overheating. Any rise in interest rates should probably boost the value of the Kiwi, since New Zealand already has its interest rates set far above those in the United States or Europe. Australia and New Zealand are also big exporters of commodities. As a result, their currencies found support in rising commodity prices as gold rose 0.07% to trade around $1,616.05, while silver was even more impressive, climbing 0.28% to stand around $40.37. However, copper is the winner of Thursday's early trading, at least among major commodities, as its price increased by 0.35% to $4.450. Fossil fuels had a less impressive day as the price of crude oil remained unchanged from its yesterday's close of $97.21.

Traders who believe that Japan, Australia and New Zealand will continue to recover from natural disasters, which should provide some steam for their currencies, might want to consider the following trades:

Traders who believe that the yen, and especially the Aussie and the Kiwi, are already overvalued, which should put some strains on the countries' economic recovery, may consider an alternate positions: