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Forex - Australian dollar eases despite upbeat housing survey

Published 09/04/2014, 11:15 PM
Updated 09/04/2014, 11:17 PM
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Investing.com - The Australian dollar fell in Asia on Friday despite a private survey showing upbeat house construction.

USD/JPY traded at 105.37, down 0.11%, while AUD/USD fell to 0.9340, down 0.09%. EUR/USD traded at 1.2934, down 0.09%.

In Australia, the AI Group/HIA August construction index rose 2.4 points to 55.0, showing a third straight month of expansion.

In Japan, August 20-day exports fell 3.3% year-on-year and imports down 1.1% for a trade deficit of ¥902.5 billion.

Upcoming, Japan's September monthly economic report is due at 1400 (0500 GMT), the same time as the indices of leading, coincident and lagging indicators for July.

The coincident composite index (CI), which reflects current business conditions, is expected to post the first rise in two months in July, up by around 0.5 point. Economists expect the government to maintain its assessment that the Japanese economy has been "stalling."

Overnight, the dollar extended the strong gains it posted against most major currencies in the wake of robust U.S. service-sector data coupled with a European Central Bank decision to loosen policy, which pummeled the euro.

The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.

The euro extended losses after ECB President Mario Draghi said the bank will begin an asset-backed securities purchasing program to shore up the recovery and steer the continent away from deflationary decline.

Draghi did not say how much debt the ECB planned to purchase, as further details will emerge in October.

The ECB cut its forecast for growth this year to 0.9% down from 1.0% previously and cut the forecast for 2015 to 1.6% from 1.7%. The bank also lowered its inflation forecast for this year to 0.6% from 0.7% in June.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 83.89.

On Friday, investors will shift their focus from Europe across the Atlantic to the U.S., which will release its August jobs report.

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