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Forex - AUD weaker before NAB business survey, JPY flat ahead of BoJ

Published 04/07/2014, 07:11 PM
Updated 04/07/2014, 07:14 PM
Australia dollar weaker before NAB business survey
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Investing.com - The Australian dollar traded a tad weaker on Tuesday ahead of business survey by National Australia Bank closely watched by the Reserve Bank of Australia as it looks for signs of the economy rebalancing as a mining boom wanes, while the yen tread water ahead of the latest Bank of Japan monetary policy review.

National Australia Bank releases its business conditions and confidence survey for March at 1130 local time (0130 GMT). In the previous month, conditions were flat and confidence up 7 points.

AUD/USD traded at 0.9266, down 0.05%, early in Asia.

USD/JPY traded at 103.11, up 0.01%, ahead of the latest BoJ statement due at 1230 local time (0330 GMT), expected to affirm current aggressive easing, and a press conference by Governor Haruhiko Kuroda at 1530 local time (0630 GMT).

In Japan at 1400 local time (0500 GMT) comes the Economy Watchers Index for March 14 - with the previous at 53 points, down 1.7 points and the Watchers Outlook Index, previously 49 points, down 9.0 points.

At 0850 local time (2350 GMT) Japan reports its February current account balance, which is expected to come into a surplus of ¥628 billion from a deficit of ¥1.589 trillion.

Overnight, the dollar traded lower on concerns that a lukewarm March jobs report will mean dovish comments will arise in the minutes of the Federal Reserve's March policy meeting due for release mid-week.

On Friday, data revealed that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000.

The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a downtick to 6.6%.

The numbers sparked expectations that even though the Federal Reserve will continue to dismantle its monthly bond-buying program, the pace at which it closes the program remains up in the air.

Fed asset purchases, which currently stand at $55 billion a month, aim to drive recovery by suppressing long-term borrowing costs, weakening the dollar as a side effect.

The euro, meanwhile, received a shot in the arm after ECB policymaker Yves Mersch said earlier that while monetary authorities are working on plans to purchase assets to steer the euro zone away from deflationary purchases, such a program is not required yet, while Governing Council member Ewald Nowotny made similar comments.

Separately, Bundesbank President Jens Weidmann said that monetary policy cannot solve the financial crisis, and urged euro zone political leaders to enact fiscal and other reforms.

The comments came after ECB President Mario Draghi said last week that unconventional monetary policy instruments may be necessary to avert the risk of ongoing low inflation becoming entrenched in the euro zone.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28% at 80.34.

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