Investing.com - The Aussie fell on Tuesday in Asia following comments from a central bank official on the need for a weaker currency and after a mixed survey of business views.
AUD/USD traded at 0.7565, down 0.10%, while USD/JPY changed hands at 101.86, flat. Australia's currency has not fallen as much as expected in response to cuts in interest rates that have taken the cash rate to a record low 1.5%, Reserve Bank of Australia assistant governor Christopher Kent said Tuesday.
National Australia Bank reported business confidence for August rose to plus-6, compared with the previous survey at plus-4, and its business survey fell to plus-7 from the previous reading at plus-8.
Then in China comes fixed asset investment for August seen up 8.0% year-on-year and industrial production expected up 6.1% year-on-year and then retail sales with a 10.3% increase seen.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.04% to 95.16.
Overnight, the dollar edged lower against the other major currencies on Monday after Federal Reserve Board Governor Lael Brainard argued Monday against prematurely removing monetary policy accommodation in the United States, remarks that are likely to significantly dampen expectations for a rate hike next week stoked on Friday by Boston Fed President Eric Rosengren who said that low interest rates are increasing the chance of overheating the U.S. economy.
But Brainard's remarks may draw the most near-term attention as the Fed enters a communication blackout period ahead of the FOMC's next meeting on Sept. 20-21 as as a key dove who has in the past been able to convince Fed Chair Janet Yellen to hold off on raising rates. The Investing.com Fed Rate Monitor Tool shows a 15% possibility of a rate hike in September at the meeting, down from above 20% earlier on Monday.
Still, earlier on Monday Atlanta Federal Reserve Bank President Dennis Lockhart said Monday the economic data of late justifies a "lively" conversation about whether to raise rates at this meting.
"Notwithstanding a few recent weak monthly reports -- from the Institute for Supply Management, for example -- I am satisfied at this point that conditions warrant that serious discussion," Lockhart said in a speech prepared for the National Association for Business Economics.
"I believe the economy is sustaining sufficient momentum to substantially achieve the committee's monetary policy objectives in an acceptable medium-term time horizon," continued Lockhart, who doesn't vote on the committee until 2018, but is largely seen as a centrist on the committee.