Investing.com – The Australian dollar traded mixed against the U.S. dollar in the Asian trade on Tuesday ahead of the release of Australia’s trade balance figure at 1130/0030.
The Australian trade balance is expected to come down to -0.300 B from previous -0.529 B. A higher than expected reading would boost the AUD.
AUD/USD traded at 0.8965, down 0.02%, while USD/JPY traded at 104.26, up 0.04%.
Later in the day China’s December Consumer Sentiment Indicator is expected at 0945/0145 and Japan MOF 10-year JGB auction results are to be released at 1245/0345.
Earlier on Monday, the pound gave back earlier gains against the dollar though it held steady as investors avoided the greenback in wake of a disappointing report on the U.S. service sector.
The dollar took a hit after the Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 53.0 in December from 53.9 in November.
Analysts were expecting the index to increase to 54.5.
The data rekindled concerns that the Federal Reserve may go slower than once expected when it comes to dismantling its USD75 billion in monthly bond purchases.
Fed officials have said they will pay close attention to data when deciding to taper the program any more.
Fed asset purchases weaken the dollar by keeping interest rates and sending investors to asset-classes like stocks or gold as long as they remain in effect.
A separate report showed that U.S. factory orders rose 1.8% in November, in line with expectations, after a 0.9% fall the previous month.
The pound saw headwinds of its own after Markit Economics reported that its Markit/CIPS Services Purchasing Managers Index declined to a six-month low of 58.8 in December from 60.0 in November. Analysts had expected an unchanged reading, and the data sent the pound in and out of negative territory.
Despite the slowdown the index still remained well above the 50.0 level that indicates expansion.
The report said confidence rose and the economy still looks likely to have expanded strongly in the fourth quarter.
Sterling was flat against the euro, with EUR/GBP trading at 0.8301.
In the euro zone, data showed that the bloc’s services purchasing managers’ index came in at 51.0 in December, unchanged from the preliminary estimate and down slightly from 51.2 in November.
Separate reports showed that activity in Spain’s private sector expanded at the fastest rate in 77 months, but activity in France and Italy contracted last month.
GBP/USD was trading at 1.6418, up 0.09%, up from a session low of 1.6338 and off a high of 1.6434.
Cable was likely to find support at 1.6313, the low of Dec. 25 and resistance at 1.6604, Thursday's high.
The Australian trade balance is expected to come down to -0.300 B from previous -0.529 B. A higher than expected reading would boost the AUD.
AUD/USD traded at 0.8965, down 0.02%, while USD/JPY traded at 104.26, up 0.04%.
Later in the day China’s December Consumer Sentiment Indicator is expected at 0945/0145 and Japan MOF 10-year JGB auction results are to be released at 1245/0345.
Earlier on Monday, the pound gave back earlier gains against the dollar though it held steady as investors avoided the greenback in wake of a disappointing report on the U.S. service sector.
The dollar took a hit after the Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 53.0 in December from 53.9 in November.
Analysts were expecting the index to increase to 54.5.
The data rekindled concerns that the Federal Reserve may go slower than once expected when it comes to dismantling its USD75 billion in monthly bond purchases.
Fed officials have said they will pay close attention to data when deciding to taper the program any more.
Fed asset purchases weaken the dollar by keeping interest rates and sending investors to asset-classes like stocks or gold as long as they remain in effect.
A separate report showed that U.S. factory orders rose 1.8% in November, in line with expectations, after a 0.9% fall the previous month.
The pound saw headwinds of its own after Markit Economics reported that its Markit/CIPS Services Purchasing Managers Index declined to a six-month low of 58.8 in December from 60.0 in November. Analysts had expected an unchanged reading, and the data sent the pound in and out of negative territory.
Despite the slowdown the index still remained well above the 50.0 level that indicates expansion.
The report said confidence rose and the economy still looks likely to have expanded strongly in the fourth quarter.
Sterling was flat against the euro, with EUR/GBP trading at 0.8301.
In the euro zone, data showed that the bloc’s services purchasing managers’ index came in at 51.0 in December, unchanged from the preliminary estimate and down slightly from 51.2 in November.
Separate reports showed that activity in Spain’s private sector expanded at the fastest rate in 77 months, but activity in France and Italy contracted last month.
GBP/USD was trading at 1.6418, up 0.09%, up from a session low of 1.6338 and off a high of 1.6434.
Cable was likely to find support at 1.6313, the low of Dec. 25 and resistance at 1.6604, Thursday's high.