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Forex - Aussie dollar a tad weaker ahead of budget, housing data

Published 05/12/2014, 07:26 PM
Updated 05/12/2014, 07:28 PM
Australian dollar weaker ahead of budget
AUD/USD
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Investing.com - The Australian dollar held slightly weaker Tuesday ahead of the first federal budget by the Liberal Party-led colaition that came to power in September last year and with markets in Singapore, Vietnam, Thailand, Cambodia, Laos, Malaysia, Myanmar and Indonesia shut for Vesak Day.

AUD/USD held at 0.9360, down 0.02%, ahead of other data as well.

In Australia, the federal budget for 2014-15 is due along with housing finance for March, a 1.1% gain expected, and the Q1 house price index, a rise of 2.9% expected, at 1130 Sydney time (0130 GMT).

The RBA's Luci Ellis, Head of Financial Stability Department, is also due to speak at 0915 (2315 GMT).

Japan sees M3 Money supply data at 0850 Tokyo (2350 GMT).

China sees retail sales, an increase of 12.2% expected, and industrial production data, up 8.9% expected, for April at 1330 local time (0530 GMT).

Overnight, the dollar traded higher against most major currencies mainly on safe-haven demand as investors priced in the possibility of a European Central Bank rate cut in June, though escalating Ukraine tensions and demand for the euro among bargain hunters steadied the greenback.

Elsewhere Monday, International Monetary Fund head Christine Lagarde renewed calls for more stimulus from the ECB, warning that persistently low inflation rates posed a serious threat to the European recovery.

Geopolitical concerns capped the greenback's advance due to fears U.S. recovery could hit a pothole if the crisis in Ukraine develops further, as many U.S. businesses are heavily exposed to Europe.

Pro-Russian separatists claimed victory in a weekend referendum on self rule in the eastern Ukrainian city of Donetsk, which stirred concerns that the country is sliding closer to civil war.

The vote has been condemned by Ukraine’s government and the West, which has threatened to hit Russia with fresh sanctions.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 79.95.

On Tuesday, the U.S. is to produce data on retail sales, as well as reports on import prices and business inventories.

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