USD/JPY climbs from five-month nadir

USD/JPY tilted higher in Asian trade off March 12 lows following earlier data from Japan and ahead of US data. 

As of 05:56 GMT, USD/JPY rose 0.06% to 105.86, with an intraday high at 106.43. 

Earlier Japanese data showed GDP shrank 0.6% q/q in the second quarter, besting estimates of a 0.7% decline. 

GDP prices rose 0.9% y/y as expected, same as the first quarter, while manufacturing PMI rose to 45.2 from 40.1 in June. 

Japan's finance minister Taro Aso described yen's recent surge as "quick", with the government concerned about the impact of a stronger currency on exports. 

From the US, manufacturing PMI is expected up to 51.3 in July from 49.8, while construction spending is expected up 1%. 

ISM manufacturing prices are expected up to 52.3 from 51.3. 

Congress will decide on a new rescue package against the coronavirus pandemic, with the World Health Organization reporting 17.7 million cases worldwide with 681,000 dead so far. 

Fitch Ratings cut the credit rating of the US from AAA stable to AAA negative, as the deficit surges and political uncertainty mounts.