Investing.com - The Australian dollar fell on Tuesday ahead of a bank survey on business confidence and conditions closely watched by the Reserve Bank of Australia as a gauge on the effectiveness of its cash rate at a record low 2.5%.
AUD/USD traded at AUD0.9088, down 0.24%, ahead of the National Australia Bank survey for November due at 1130 local time (0030 GMT). In the previous survey, confidence was recorded as +5, while conditions were at -4.
In Japan a fourth quarter business survey due at 0850 local time (2350 GMT) will also be closely watched with a forecast of 17.2 points, up from 15.2 points in the previous survey. Later in the day, the Japan November consumer confidence survey is due at 1400 local time (0500 GMT) with a forecast of 44.2 points from 41.2 points in the previous survey.
USD/JPY traded at 103.32, up 0.04%.
Overnight the dollar traded mixed to lower against most major currencies as investors digested data and tried to predict when the Federal Reserve will begin to taper its monthly asset purchases.
Jobs data released Friday that was stronger than expected kept expectations firmly in place that the Federal Reserve will begin scaling back its USD85 billion in monthly bond purchases in the coming months, which weaken the dollar to spur recovery.
The U.S. economy added 203,000 jobs in November, beating expectations for an 180,000 increase and up from a downwardly revised 200,000 rise the previous month.
Earlier Monday, Fed St. Louis President James Bullard said the chances of a Fed decision to taper asset purchases are growing now that the labor market has shown improvement.
“A small taper might recognize labor market improvement while still providing the Committee the opportunity to carefully monitor inflation during the first half of 2014,” Bullard said in prepared remarks of a speech he delivered earlier.
“Should inflation not return toward target, the Committee could pause tapering at subsequent meetings.”
Many investors expect tapering to begin early in 2014, though some have not ruled out the possibility of a start date beginning at the Fed's Dec. 17-18 policy meeting, the uncertainty of which allowed the dollar to weaken and stocks room to rise.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 80.13.
AUD/USD traded at AUD0.9088, down 0.24%, ahead of the National Australia Bank survey for November due at 1130 local time (0030 GMT). In the previous survey, confidence was recorded as +5, while conditions were at -4.
In Japan a fourth quarter business survey due at 0850 local time (2350 GMT) will also be closely watched with a forecast of 17.2 points, up from 15.2 points in the previous survey. Later in the day, the Japan November consumer confidence survey is due at 1400 local time (0500 GMT) with a forecast of 44.2 points from 41.2 points in the previous survey.
USD/JPY traded at 103.32, up 0.04%.
Overnight the dollar traded mixed to lower against most major currencies as investors digested data and tried to predict when the Federal Reserve will begin to taper its monthly asset purchases.
Jobs data released Friday that was stronger than expected kept expectations firmly in place that the Federal Reserve will begin scaling back its USD85 billion in monthly bond purchases in the coming months, which weaken the dollar to spur recovery.
The U.S. economy added 203,000 jobs in November, beating expectations for an 180,000 increase and up from a downwardly revised 200,000 rise the previous month.
Earlier Monday, Fed St. Louis President James Bullard said the chances of a Fed decision to taper asset purchases are growing now that the labor market has shown improvement.
“A small taper might recognize labor market improvement while still providing the Committee the opportunity to carefully monitor inflation during the first half of 2014,” Bullard said in prepared remarks of a speech he delivered earlier.
“Should inflation not return toward target, the Committee could pause tapering at subsequent meetings.”
Many investors expect tapering to begin early in 2014, though some have not ruled out the possibility of a start date beginning at the Fed's Dec. 17-18 policy meeting, the uncertainty of which allowed the dollar to weaken and stocks room to rise.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 80.13.