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Forex - Aussie drifts lower ahead of housing, private sector credit

Published 03/30/2016, 07:07 PM
Updated 03/30/2016, 07:09 PM
Aussie drifts weaker
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Investing.com - The Aussie drifted lower in Asia on Thursday with housing and private sector credit figures ahead.

AUD/USD traded at 0.7667, down 0.05%, while USD/JPY changed hands at 112.46, up 0.03%.

In Australia ahead comes HIA new home sales for February with the previous month up 3.1% month-on-month, with private sector credit a bit later expected to show a 0.5% gain month-on-month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 94.79.

Overnight, the dollar fell to five-month lows against the other major currencies on Wednesday, even after data showed that U.S. non-farm private employment rose more-than-expected this month, as comments by Federal Reserve Chair Janet Yellen continued to weigh. Payroll processing firm ADP said non-farm private employment rose by 200,000 last month, surpassing expectations for an increase of 194,000.

The economy created 205,000 jobs in February, whose figure was downwardly revised from a previously reported increase of 214,000.

In a speech at the Economic Club of New York late Tuesday, Yellen said global risks to the U.S. economy, including low oil prices and uncertainty over China justified taking a cautious approach to tightening monetary policy.

The comments contrasted with recent remarks by some Fed officials who indicated that the bank could act as soon as next month to raise interest rates.

Earlier Wednesday, data showed that Japan’s factory output posted the largest drop in February since a massive earthquake and tsunami in 2011 hit the supply chain, adding to fears that the economy is at risk of falling into a recession.

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